LVMH (LVMH.PA), the world’s largest luxury firm, reported a 17% gain in first-quarter sales, more than twice analysts’ projections, as China returned from COVID-19 lockdowns.
The French firm, which includes Louis Vuitton, Dior, Hennessy cognac, and Tiffany, had 21.04 billion euros ($23.10 billion) in sales from January to March.
According to a Visible Alpha average, analysts expected 8% growth, while organic growth was 17%, excluding currency swings and acquisitions.
The first glimpse of the Chinese resurgence following lockdowns at the end of 2022 came from LVMH, a bellwether for the high-end industry that has weathered inflation and market turbulence.
They will also ease investor fears about a downturn in the U.S. market, where the robust demand that bolstered European fashion businesses last year is receding, particularly among younger, lower-spending buyers.
LVMH said first-quarter sales rose 14% in Asia, excluding Japan, and 8% in the U.S. Last year, Asia sales were unchanged, while U.S. sales grew 15%.
“Asia experienced a significant rebound,” the business claimed.
LVMH made 27% of its 2022 revenues in the Americas and 30% in Asia, excluding Japan.
LVMH’s shares have increased 23% since the start of the year, surpassing the French blue-chip index’s 14.5% growth and giving the luxury goods giant a market value of 420 billion euros, making it Europe’s most valuable corporation.
