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French luxury group LVMH (OTCPK:LVMUY) saw 21% organic sales growth in the first half of 2022, overcoming concerns on slow sales in China and inflation.
Sales across the business jumped 28% from the first half of 2021, led by surging demand for leather goods, wine & spirits, and cosmetics from the year prior. By geographic region, the relative contributions of France and the United States rose by 2% each to help offset declines in Asian sales and shutdowns in Russia.
“Revenue picked up strongly in the second quarter due to order levels catching up on their backlogs following supply constraints in the first quarter,” a company statement read. “Demand remained high in the United States, despite being hampered early in the year by recurring logistical issues, whereas China was affected by the public health situation. Europe and Japan saw strong growth in the first half.”
Champagne sales were cited as accelerating specifically sharply into the start of the summer.
Nonetheless, US-listed shares of luxury retailer LVMH (OTCPK:LVMHF) slid sharply on Tuesday after the release. Fellow luxury players such as Farfetch (FTCH) and Capri Holdings (CPRI) also fell sharply on Tuesday amid a broad selloff for retail stocks.
Read more on recent luxury spending trends.