PARIS (Reuters) – LVMH on Wednesday announced a 17% increase in its sales in the first quarter, the rebound in China with the lifting of restrictions linked to COVID-19 having taken over from the United States to inflate the activity of the number a world of luxury.
These results provide the first tangible signs of the effects of the end of the “zero COVID” policy in China, suddenly abandoned at the end of 2022, for a global luxury sector which has previously been able to withstand inflation and financial market turbulence. .
The renewed momentum in China should also allay investors’ fears about the slowdown observed among American customers, whose strong demand supported the sector last year.
LVMH, owner of famous brands such as Dior, Louis Vuitton or Tiffany, achieved a turnover of 21.04 billion euros in the first quarter, i.e. organic growth of 17% more than twice the increase of 8% expected by analysts according to a Visible Alpha consensus quoted by UBS.
With sales growth of 18%, the fashion and leather goods division, the largest with around half of the group’s annual turnover and the main contributor to profit, once again played a driving role with the return of customers. Chinese in the shops.
In contrast, sales growth in the United States, at 8%, slowed from 15% last year, as higher prices helped curb purchases.
(Written by Mimosa Spencer, Bertrand Boucey, edited by Blandine Hénault)
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