LVMH: Luxury giant's sales soar despite China losses

The world's biggest luxury group has reported strong sales driven by the holiday shopping season.

LVMH said they experienced a second straight record year with revenue and profits despite geopolitical tensions and high cost of living.

Sales reached almost $25bn (£19.9), a 9% increase in the final three months of the year.

The company saw strong growth in Europe, US and Japan which made up for losses in China due to Covid lockdowns.

In Asia, LVMH did experience a 20% drop in growth in the first nine months as the world's second largest economy doubled down on its zero-Covid policy.

LVMH brands include Tiffany's, Christian Dior, Sephora, Hennessey and Moët.

Its designer label Louis Vuitton did exceptionally well. Its revenue surpassed $21.7bn for the first time. The label recently launched a new collaboration with Japanese contemporary artist Yayoi Kusama, who is known for her art made of colourful dots.

LVMH's earnings are viewed by analysts as a bellwether in the luxury market.

Bain and Company said they see a boost in spending on personal luxury goods overall.

"The personal luxury market is projected to see further growth of at least 3-8% next year, even given a downturn in global economic conditions," according to a report from the consulting company.

Source:BBC