Luxury goods giant LVMH has reported record revenue and profits for the second year in a row.
Revenue for 2022 reached €79bn (£69.4bn), while profit from recurring operations hit €21bn (£18.5bn), both up 23% compared to 2021. Sales rose 9% in the final three months of the year alone.
According to a statement, the success is ‘driven by the agility of its teams, their entrepreneurial spirit and its well diversified presence across businesses and geographic areas’. The retailer has stated they enter 2023 ‘with confidence’.
For analysts, LVMH’s earnings are looked at as a bellwether for the luxury market. Louise Deglise-Favre, apparel analyst at GlobalData, says the results “clearly” illustrate that “luxury shoppers’ wallets remain unaffected by high inflation and mounting living costs”.
All business groups within the firm achieved notable revenue growth over the year, with the fashion and leather goods division setting a new record as revenue grew 20%.
Flagship designer label Louis Vuitton performed especially well, with revenue surpassing €20bn (£17.59bn) for the first time.
Meanwhile, LVMH-owned beauty retailer Sephora also enjoyed a “record performance”. The retailer’s online launch in the UK last year attracted so many visitors that the website crashed, and there are plans to open a physical store in Westfield London within the next few months.
According to chairman and CEO Bernard Arnault, the business’s performance is evidence of the “exceptional appeal” of its brands and their ability to “create desire” amid challenging economic circumstances around the world.