PARIS (Reuters) – French group LVMH posted a 17% increase in sales in the first quarter, supported by a strong recovery in activity in China, which is serving as a growth engine at a time when buyers in the U.S. the post-pandemic shopping spree is starting to slow down.
Sales of the world‘s largest luxury group, which owns fashion houses Louis Vuitton and Dior, as well as cognac maker Hennessy and US jewelery maker Tiffany, totaled 21.04 billion euros in the three months to March.
Growth of 17% on an organic basis, which excludes the effect of currency fluctuations and acquisitions, was more than double the estimates of analysts who had expected an 8% increase, according to the Visible Alpha consensus.
Data from LVMH Group, a barometer for the luxury sector that has proven resilient to rising inflation and market turmoil, offered the first snapshot into the extent of China’s recovery after lockdowns in the country dented sales at the end of 2022.
The results will also help allay investor fears about a slowdown in the US market, where the strong demand that buoyed European fashion houses last year is showing signs of waning, particularly among younger, less-spend-friendly shoppers. .
(Translated by Chiara Bontacchio, editing by Sabina Suzzi)