By Leah Montebello
Dior owner LVMH smashed third quarter forecasts this evening, with business in China finally picking up thanks to Covid restrictions being eased.
The luxury goods giant, which owns brands like Bulgari and Tiffany & Co, said sales climbed 19 per cent from the previous year to €19.8bn.
The fashion and leather goods division were a particular big hitter, with a 22 per cent increase on the same period a year ago.
“Europe, the United States and Japan, up sharply since the start of the year, benefitted from the solid demand of local customers and the recovery in international travel,” the group said in a statement.
“Asia, including China, saw a lower level of growth over the first nine months of 2022, though growth in the latest quarter accelerated there due to the partial easing of health restrictions,” it said.
Gerrit Smit, manager of the Stonehage Fleming Global Best Ideas Equity fund, said LVMH results were “excellent”, with the growth in fashion and leather goods particularly “comforting”.
“The fact that all divisions experience double digit growth over both the quarter and nine month periods for such a large group is truly impressive. Furthermore, despite the economic slowdown they maintained the second quarter’s growth into the third quarter,” he said.
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