LVMH posts record revenue in 2022 with 23% increase in revenue, benefiting from the demand for travel and shopping brought about by a stronger dollar

The increase in performance is mainly due to the retaliatory consumption of consumers in Europe, the US and Japan since the beginning of the year. The best performance is in the European market. Due to a stronger dollar, American tourists have traveled to Europe and Japan for shopping.

Revenues in Europe, the US and Japan rose sharply, increasing by 35%, 15% and 31% respectively. The Asian market excluding Japan improved from the 8% decline in the previous quarter and recorded a 6% increase.Although the situation in China improved from the second quarter, store traffic has yet to return to normal.

In terms of business lines, in FY2022,the sales revenue of all businesses of the LVMH Group achieved significant growth, and the global market share increased.

The fashion and leather goods business performed well, increasing by 25% to €38.648 billion:Louis Vuitton, Dior, Celine, Fendi's revenue and profits all reached record levels. Among them,Louis Vuitton's revenue exceeded €20 billion for the first time, contributing a quarter of the group's revenue. Dior sales roughly tripled to €9 billion in the past two years, exceeding Hermes' 2021 revenue of €8.982 billion.

Selected retail business revenue increased by 26% to €14.852 billion:With the recovery of global travel retail, Sephora's revenue and earnings have hit record highs, with particularly strong growth momentum in North America, Europe, the Middle East and most Southeast Asian countries. At the same time, the group further invested in Sephora's omnichannel strategy to continuously improve the online and store purchasing experience.

Fragrance and cosmetics business revenue increased by 17% to €7.722 billion, organic revenue increased by 10%:operating profit fell due to the surge in costs caused by global inflation. Among them, Dior's perfume, make-up and skincare products are still the main growth drivers. Dior's Sauvage perfume maintains the lead, and Fenty Beauty benefits from the expansion of the distribution network and the launch of new products to double its revenue.

Watch and jewelry business revenue increased by 18% to €10.581 billion:Driven by the high-end strategy, Tiffany’s jewelry revenue doubled, and Bulgari also continued its strong growth momentum, especially in the European, Japanese and American markets.Tiffany's brand appeal is growing, with record results in FY2022 and a doubling of fine jewelry revenue. In order to better consolidate the brand positioning of high-end jewelry, Tiffany raised the price of products worldwide again in November last year, and the increase in the Chinese market ranged from 20% to 59%. In terms of brand marketing, the brand is also moving closer to creating new classics, trying to replicate the word-of-mouth effect caused by the movie "Breakfast at Tiffany's".

Although China's business was impacted to a certain extent last year, Asia is still LVMH's largest market, accounting for 37% of total sales, followed by the United States, accounting for 27%, then Europe and France accounting for 24%. The rest of the global market accounted for 12%. As of the end of the reporting period, LVMH had 5,664 stores worldwide, a net increase of 108 over the last year.

Bernard Arnault, CEO of LVMH, said in the earnings report that although the general environment was full of uncertainties last year, its brands had consolidated and even improved their positions in their respective fields, and that it would invest more in its products and distribution network in the future, while carrying out a more diversified layout to further strengthen its leading position in the global luxury market.

In addition, in the reporting year, the group invested nearly €5 billion in operations, mainly expanding the store network, upgrading production facilities and recruiting human resources. The group's operating free cash flow exceeded €10 billion this year.In view of the still high demand for luxury goods from wealthy consumers around the world, the layout of the supply chain has also been put on the agenda by LVMH.

Following Fendi and Dior, Louis Vuitton will build a new factory in the small town of Sieci in the Tuscany region of Italy to produce handbags and other leather accessories for Louis Vuitton. At that time, the factory will be the largest workshop of LVMH in Italy.