LVMH defies cost of living crisis to post record profit as wealthy keep spending
High shelf life: LVMH said sales and profits jumped nearly a quarter in 2022
The luxury giant behind Louis Vuitton has had a banner year despite war in Ukraine, lockdowns in China and soaring costs of living.
LVMH, which also owns Moet, Hennessy, Christian Dior and dozens of other brands, said sales and profits jumped by almost a quarter in 2022. Boss Bernard Arnault, the richest man in the world, said it showed an ability to “create desire” despite the economic situation. and political unrest.
And Hargreaves Lansdown analyst Sophie Lund-Yates said the French company was the “jewel in the crown of luxury”. She said: “The ultra-rich are not put off by economic ups and downs, and inflation is unlikely to hurt their spending habits.” She pointed to a rise in popularity for the brands, adding: “Therein lies the real strength of LVMH.
“Customers may be resilient, but Louis Vuitton and Christian Dior have enjoyed genuine artistic superiority over the past few quarters.”
Sales reached £69.5bn in 2022, while profits were £18.5bn, both up 23% on the previous year.
LVMH shares rose 1.2% in Paris. Lund-Yates said the company, which has seen its value more than triple in the past five years, “doesn’t seem to lack momentum.”
