×
3 008
Fashion Jobs
ESTÉE LAUDER
Clinique Consultant - 29 Hrs - 1 Year Contract - Montreal, qc
CDI · Montreal
TJX CANADA
Loss Prevention Programs & Communications Manager
CDI · Mississauga
TJX CANADA
Loss Prevention Analytics Manager
CDI · Mississauga
TJX CANADA
Loss Prevention Technology & Physical Security Manager
CDI · Mississauga
L'OREAL GROUP
Marketing Manager - Montreal
CDI · Montréal
L'OREAL GROUP
Chef de Production
CDI · Montréal
L'OREAL GROUP
Key Account Manager - Montreal
CDI · Montréal
L'OREAL GROUP
Regional Sales Manager - Calgary, ab
CDI · Calgary
ZARA
Operations Manager. Zara Sherway Gardens
CDI · TORONTO
L'OREAL GROUP
Account Executive
CDI · Montréal
FOOT LOCKER
Overnight Operations Manager
CDI · Toronto
TJX CANADA
Loss Prevention Store Investigator, Edmonton
CDI · Edmonton
LA BAIE D'HUDSON
Directeur Général Adjoint - Anjou
CDI · MONTRÉAL
HUDSON'S BAY
Senior Asset Protection Manager, Queen st
CDI · TORONTO
TJX CANADA
Loss Prevention Store Investigator - Gta
CDI · Mississauga
L'OREAL GROUP
Analyste Financier - Ville Saint-Laurent
CDI · Montréal
NORDSTROM CANADA RETAIL INC
Asset Protection - Security Ambassador - Eaton Centre
CDI · Toronto
TJX CANADA
Distribution Centre Loss Prevention Coordinator, Brampton
CDI · Brampton
ADIDAS
Bilingual Customer Service Account Coordinator (English, French)
CDI · Vaughan
LEVI'S
Levi's Sales & Merchandising Supervisor, Toronto Eaton Centre, Toronto (Part-Time)-1
CDI · Toronto
LEVI'S
Levi's Sales And Merchandising Supervisor, Part-Time, Toronto Eaton Centre, Toronto, on
CDI · Toronto
L'OREAL GROUP
Sales Planning Coordinator
CDI · Montréal
By
Reuters API
Published
Oct 12, 2021
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Luxury giant LVMH says third quarter sales grew by 20%

By
Reuters API
Published
Oct 12, 2021

Sales at French luxury group LVMH's fashion and leather goods division rose strongly in the third quarter even though overall revenue growth in Asia and the United States eased from their stellar first-half performance.


Revenues for this business at the end of the quarter were 38% above their pre-pandemic, 2019 level, the same rate as in the first half - Louis Vuitton



LVMH, whose luxury products span Moët & Chandon champagne and Bulgari timepieces, said on Tuesday the popularity of its star labels Louis Vuitton and Dior helped its fashion and leather goods division, which accounts for nearly half of group sales, to report 24% growth.

Revenues for this business at the end of the quarter were 38% above their pre-pandemic, 2019 level, the same rate as in the first half.

The luxury goods industry has bounced back strongly from the health crisis, even if international travel, a key growth driver in pre-pandemic times, has not fully resumed.

LVMH chief financial officer Jean-Jacques Guiony said revenue growth in Asia had been under pressure in August due to anti-coronavirus restrictions being partially re-imposed in some countries but said the group had not noticed a change in consumer behavior in China.

A call by China’s President Xi Jinping in August for "common prosperity" and wealth redistribution had prompted investors' to worry that Beijing might promote measures aimed at reducing the country’s wealth gap, curbing high-end consumption in the world's largest luxury market.

"We don’t see any reason that this could be detrimental to the upper middle class that is the bulk of our customer base," Guiony said.

Luca Solca, analyst at Bernstein, was positive on the strong revenue performance at the fashion and leather goods business.

"We believe this should comes as a relief to investors, especially after the August wobble in the sector and doubts on Chinese demand trends and even if other divisions reduce their growth versus 2019 in the third quarter.”

The company's performance showed a marked improvement in Europe in the third quarter, even without deep-pocketed visitors from Asia, as local travel resumed over the summer.
LVMH recorded 28% revenue growth in the United States, compared with a 60% rise in the first half of the year, and 12% in Asia, excluding Japan, compared with 70% in the first six months of the year.

Guiony said the group had no supply chain issues given its manufacturing is largely based in Europe and also brushed off concerns about rising shipping costs, noting that the group has sufficient margins to cope.

Overall Like-for-like sales, stripping out the effect of foreign exchange fluctuations, rose by 20% to 15.51 billion euros ($17.90 billion) in the three months to September.

Growth was roughly in line with an analyst consensus forecast for a 21% rise.

Guiony said the company would continue to focus on broadening the appeal of its blockbuster acquisition, U.S. jeweller Tiffany, by refocusing its product assortment and ongoing marketing efforts.

LVMH has been rebranding the jeweller with an eye to attracting younger consumers, projecting a campaign starring Beyonce and Jay-Z on digital billboards in New York City’s Times Square and creating buzz on social media with K-pop star Rose.

© Thomson Reuters 2021 All rights reserved.