PARIS (AFP) – The world’s top luxury group LVMH said on Thursday that its sales and net profit both hit new heights last year, driven by strong demand in Europe, the United States (US) and Japan.
Sales soared 23 percent to EUR79 billion (USD86 billion) and net profit jumped 17 per cent to EUR14 billion for 2022 – both new records for the group, whose brands include Bvlgari, Givenchy, Louis Vuitton and TAG Heuer.
“Europe, the US and Japan rose sharply, benefiting from strong demand from local customers and the recovery of international travel. Asia was stable over the year due to developments in the health situation in China,” LVMH said in a statement.
“With the month of January having started well and despite an uncertain geopolitical and economic environment, LVMH is confident in its ability to continue the growth observed in 2022.”
LVMH is headed by French billionaire Bernard Arnault, who overtook Tesla and Twitter boss Elon Musk as the world’s richest man late last year.
The maker of handbags, jewellery and other luxury goods is Europe’s most valuable company, with a market capitalisation that soared to EUR400 billion (USD430 billion) last week.
Sales in its flagship division of fashion and leather goods increased 25 per cent, while for watches and jewellery they grew 18 per cent, the group said.
High-end jeweller Tiffany, which was bought by LVMH in 2021, saw a record year, it added without giving a breakdown of its sales.
“We had a very difficult month of December in China,” LVMH Chief Financial Officer Jean-Jacques Guiony told reporters.
He said the situation had improved, although he did not see Chinese tourists returning to Europe “straight away”.
LVMH will pay shareholders a dividend of EUR12 per share, up from EUR10 the previous year.