LVMH 1Q Revenue Outstripped Expectations Despite Global Pressures

   By Joshua Kirby 
 

LVMH Moet Hennessy Louis Vuitton SE said Tuesday that sales rose strongly in the first quarter, despite headwinds from pandemic-related lockdowns in China.

The French luxury-goods major made quarterly revenue of 18 billion euros ($19.59 billion), 23% higher on year at constant currency. The group had been expected to post revenue of EUR17.03 billion, according to a poll of analysts' estimates compiled by FactSet.

The core fashion and leather-goods division, which houses brands Dior and Louis Vuitton, posted the strongest organic growth of 30% to EUR9.12 billion. All other divisions also grew on year, with the wines and spirits business seeing the slowest growth at 2%, amid supply constraints, LVMH said.

Revenue grew at double digits in the U.S. and Europe, and Asian revenue also increased despite the impact of tightening sanitary restrictions in China in March, the company said.

Looking ahead, LVMH noted the uncertainty caused by the geopolitical environment, but said it remained confident, and that it will continue to focus on innovation and investment in its brands as it looks to "further strengthen its global leadership in luxury goods" this year.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

April 12, 2022 12:15 ET (16:15 GMT)

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