THE WHAT? LVMH has reported a ‘good start to the year’, recording revenue at €14 billion for Q1 2021, up 32 percent YOY.
THE DETAILS The increase marks a return to growth for the luxury goods company following several quarters of decline during 2020.
Fashion and leather goods was highlighted as having a particularly ‘excellent start’, up 52 percent on an organic basis, while Selective Retailing, which continued to be impacted by international travel restrictions, was the only sector to report a drop.
Perfumes and cosmetics reported an 18 percent YOY rise in the quarter, with the sector said to have benefitted from the continued growth in online sales from local consumers. This offset the impact of international travel suspensions and the closure of local stores.
THE WHY? The promising start to the year highlights the staying power of luxury goods in the wake of a crisis, with LVMH sales mainly driven by U.S. and Chinese consumers continuing to shop for premium items from the group’s brands such as Dior and Louis Vuitton.
Should LVMH continue with similar revenues, the group’s annual revenue will exceed pre-pandemic figures.