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LVMH has started the 2021 financial year with a return to sales growth led by demand for fashion and leather goods from Asia and US shoppers, even as its European store network remains closed.
The fashion and leather goods category posted 52 per cent growth compared with 2020. Financial market analysis firm Visible Alpha anticipated an increase of 31 per cent. Louis Vuitton and Dior were the two standouts, with performance strength across the handbag, ready-to-wear and shoe categories, chief financial officer Jean-Jacques Guiony said. He also noted strong performances at Fendi, Loewe, Celine and Marc Jacobs.
LVMH, the world’s largest luxury goods conglomerate, is outpacing the market as it continues to spend on marketing while rivals hold back, and demand from luxury consumer shoppers, who still can’t spend on travel and experiences, continues. For the group, sales rose 30 per cent compared with 2020, and 8 per cent compared with the pre-pandemic period in 2019. That’s a rebound from the overall fourth-quarter sales decline of 19 per cent. Watches and jewellery rose 35 per cent, the perfumes and cosmetics division climbed 18 per cent, with Selective Retailing, which includes Sephora and DFS, the outlier, dropping 5 per cent in the quarter.
“The hefty market share gains at Louis Vuitton should carry on as product flow continues to impress and the ‘buy less, buy better’ attitude of consumers remains supportive,” wrote HSBC global head of consumer and retail research Erwan Rambourg. “Dior Couture is on a soaring trajectory, which has no rationale for being halted any time soon.”