Adds details, outlook
PARIS, Jan 27 (Reuters) – French luxury goods group LVMH posted a 27% rise in comparable sales for the fourth quarter, breezing past market forecasts as consumers snapped up high-end fashion and accessories over the holiday season.
LVMH, which owns brands spanning Hennessy cognac to cosmetics retailer Sephora, said on Thursday fourth-quarter sales came in at 20.04 billion euros ($22.34 billion) overall, with growth led by the group’s blockbuster labels Louis Vuitton and Dior.
The luxury labels propelled a 28% rise in sales of LVMH’s largest division, fashion and leather goods, on a like-for-like basis, beating analyst expectations for 16% growth. Revenues for the business in the last three months of last year came in 51% above their 2019, pre-pandemic level, the group said.
All divisions posted double-digit growth, percentage-wise, with the fastest pace marked by the specialised distribution division, which includes Sephora, booking a 30% revenue rise over the quarter as consumers flocked to stores for holiday purchases at the end of the year.
The luxury industry rebounded strongly from the coronavirus crisis last year, lifted by pent up demand from consumers after months of lockdowns and store closures.
LVMH has tapped into this appetite for high end goods, and gained ground on rivals with active marketing campaigns and catering to consumers on a local level. Its fashion and leather goods increasing market share to around 21% compared to 16% before the pandemic, according to UBS forecasts.
“Within the context of a gradual recovery from the health crisis, LVMH is confident in its ability to maintain its current growth momentum,” the group said in a statement.
($1 = 0.8969 euros)
(Reporting by Mimosa Spencer, editing by Silvia Aloisi)
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