Luxury: Record profits for LVMH thanks to the US market
The luxury sector is doing very well…
If we are to believe LVMH’s balance sheet, everything is going well in the land of splendor and elegance… The French group has just presented its results for 2021 and they are quite impressive…
Last year, the luxury giant made a net profit of 12 billion euros… An amount rarely achieved by French groups. In detail, LVMH’s turnover fell by 36% compared to 2020, and by 14% compared to 2019.
That is to say that Bernard Arnault’s group is doing even better than before the pandemic…
And the most efficient division is that of fashion and leather goods…
Louis Vuitton, Christian Dior, Céline, Kenzo… The brands of the fashion and leather goods division achieved 30 billion euros in sales, i.e. 42% more than two years ago… This is the main source of profit for LVMH … and it has taken advantage of a new mode of consumption: foreign customers no longer come to Europe very much to do their shopping, but they consume from home. In the United States first, LVMH’s largest marketthen in Asia, especially in China where sales of the world leader in luxury have doubled since 2019.
We can also highlight the success of the watches and jewelry division, boosted by the integration of Tiffany within LVMH. Last year the American brand broke a sales record while its famous store on 5th Avenue in New York was closed. Beyoncé and Jay Z, the new ambassadors of Tiffany, can pop the champagne.
Especially since Monsieur Carter has his own brand, 50% owned by LVMH.