Things are not that bad in luxury goods, space and here as shoppers in Europe and the US plunged over crucial holiday season mainly on luxury goods, European firm LVMH sales have risen 9% in fourth quarter.
It has also helped partly to offset COVID disruptions in China. Sales at world's biggest luxury group reached 24.6$ billion in the final three months of the year, with 9% increase in organic bases. It's a touch above expectations for 7% growth.
However, it was a deceleration from 20% growth recorded in first nine months of the year due to hit in China from lockdowns and its subsequent exit from zero COVID policy that has spurred a surge of infections in the world's second largest economy.
LVMH It's a conglomerate spanning spirits, jewelry, cosmetics and fashion, which is regarded as a bellwether for wider luxury industry. It does not give a breakdown for its brands now, but it said in 2022 its star designer level, Louis Vuitton, by far world's largest, surpassed $20 billion in sales for the first time.
It's around a quarter of total group revenues for the year and doubling its sales of 2018. Meanwhile, LVMH has gained market share every year since 2019 and its boss, Bernan is world's richest man now.
LVMH shares have hit new highs this month, giving luxury goods group a market cap of $400 billion for the first time and cementing its lead as Europe's most valuable firm. Analysts expect strong return of Chinese shoppers, main source of profits for luxury companies before the pandemic after three years of COVID disruptions to boost industry this year.
