Louis Vuitton owner LVMH returns to growth with €14bn revenue
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Luxury product group LVMH has returned to growth for the first time in almost a year, with revenue of €14bn (£12.16bn) for the first quarter of 2021.
The figure marks a 32 per cent jump compared to the same period last year after the pandemic delivered serious disruption to the Louis Vuitton owner.
The figure was nearly double an analyst consensus forecast for 17 per cent growth cited by UBS.
Organic revenue grew eight per cent compared to the first quarter of 2019, marking a return to the company’s pre-pandemic upward trend.
LVMH said it noted strong trading across the board, with the exception of its selective retailing department which was affected by disruptions to international travel.
The company saw a 35 per cent jump in sales of its watches and jewellery products compared to the same period last year. It comes after LVMH in January completed its $16bn takeover of US jewellery brand Tiffany & Co.
The deal was almost derailed when LVHM attempted to abandon the acquisition, prompting Tiffany to take legal action against the luxury goods conglomerate.
The company also enjoyed a 52 per cent increase in sales of is fashion and leather goods, driven chiefly by strong demand for Louis Vuitton products.
Customers celebrated a potential light at the end of the tunnel regarding the pandemic, with sales of its champagne brands including Dom Perignon and Moet up 22 per cent compared to the first quarter of 2020.
The figures marked a strong return for LVMH, after the business saw revenue tumble 17 per cent in 2020, while profits fell 28 per cent.
But luxury customers have restarted their spending sprees this year, with stores in key markets such as China driving a sharp recovery.
The rebound helped chief executive Bernard Arnault see his net wealth jump almost $100bn over the past year.
Arnault, who has a 47 per cent stake in LVMH, is currently the third richest person in the world with a net worth of $171bn.