LVMH Kept Pace of Sales Growth in 3Q as China Picked Up

By Joshua Kirby

French luxury-goods giant LVMH Moet Hennessy Louis Vuitton SE on Tuesday reported a steady rise in third-quarter sales, with growth in Asia accelerating amid an easing of pandemic-related restrictions in China.

he Paris-based group made sales of 19.76 billion euros ($19.17 billion) between July and September, 19% higher at constant currency than the EUR15.51 billion it made in the same period last year. This beat analysts' expectations of EUR19.10 billion, as recorded in a poll of estimates compiled by FactSet.

Growth remained stable from the 19% organic increase booked the previous quarter, suggesting no material impact on demand from the pressures of inflation.

Sales in the group's core fashion and leather-goods business climbed 22% on year to EUR9.69 billion, leading growth among LVMH's divisions.

In Europe, the U.S. and Japan, sales performance remained solid thanks to solid demand form local luxury consumers and a recovery in international travel, LVMH said. In the rest of Asia, including China, growth picked up in the third quarter after a more sluggish performance previously, as pandemic rules were partially eased, the company said.

The company is confident, it said, of maintaining current growth levels with a policy of cost control and selective investment, even in the face of an uncertain geopolitical and macroeconomic environment.

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

(END) Dow Jones Newswires

October 11, 2022 12:14 ET (16:14 GMT)

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