The sales of LVMH beats the expectations in spite of the feeble growth in China

Key cities in the consumption of luxury like Hong Kong or Macao saw diminish sales owing to the restrictions by the Covid-19

Redacción
Editorial
05 of August of 2022
Grupo LVMH aumenta sus ventas

The group of luxury LVMH has informed by means of a press release that his sales have grown to double digit in this first-half of 2022, still with the situation complicated that it lives in China.

The multinational of the luxury of French origin, closed the last exercise of the 2021 with his maxima, and seem to be, that six months afterwards the company that the accounts of the company continue with an upward trend. LVMH Reported some better results of what expected, experiencing a big growth with United States, and also in Japan. Also a recovery in the market of Europe. With the combination of both factors, the company has achieved that unobserved pass the decreasing of the shopping because of the closings by the pandemic in the Asian continent, especially, in China, one of the main customers in the sector of the luxury. From mediated of the month of March, the country has imposed some serious restrictions with the intention to put brake to the contagions and to the new derivative strains of the Covid-19. The closings of the stores and the lockdowns of population, usual already in the Chinese country, have done that the income fell also in "two digits" in this territory. Although the company has exposed that has noticed some sign of improvment in the last months of the quarter, they ensure that "it is not very significant" since the influx of consumers in physical establishments was "far below" last year’s levels. Most brands belonging to the LVMH group have increased between 3% and 8% his prices, but has not observed any shrinking by part of the consumers caused by the increase of prices to global level.

ICompared to the same period last year, the sales of the group LVMH have increased 19%, in absolute terms, would be 18.730 million euros. This figure surpasses the expectations of various analysts that established a figure of 17.130 million euros. The greater increase in sales in this second quarter gave in the fashionable articles and leather. The biggest brand of the group, Louis Vuitton, has been able to keep his levels of profitability to a "exceptional level" as it informs the company. The brand has recovered 48% of the income in Europe, and has also rebounded in Japan and the United States.