LVMH defies cost of living crunch as wealthy continue to splash out
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LVMH defies cost-of-living crisis to post record profits as the wealthy keep splashing
High life: LVMH said sales and profits are up nearly a quarter in 2022
The luxury giant behind Louis Vuitton had a record year despite war in Ukraine, lockdowns in China and rising costs of living.
LVMH, which also owns Moet, Hennessy, Christian Dior and dozens of other brands, said sales and profits will grow by nearly a quarter in 2022. Boss Bernard Arnault, the richest man in the world, said it was despite economic and political turmoil.
And Hargreaves Lansdown analyst Sophie Lund-Yates said the French company is the “jewel in the crown of luxury.” She said: “The ultra-rich are undeterred by economic ups and downs, and inflation is unlikely to affect their spending habits.” Highlighting a rising popularity of brands, she added, “Therein lies the true strength of LVMH.
“Clients may be resilient, but the likes of Louis Vuitton and Christian Dior have enjoyed real artistic superiority in recent quarters.”
Revenue was £69.5bn in 2022, while profits were £18.5bn, both up 23 per cent from a year earlier.
The share of LVMH rose by 1.2 percent in Paris. Lund-Yates said the company, whose value has more than tripled in the past five years, “doesn’t seem to be losing momentum.”