LVMH Moët Hennessy Louis Vuitton is boasting excellent second-quarter sales thanks to the support of U.S. and European consumers.
Reuters reported on July 27 that the world leader in luxury products conglomerate reported revenues of $18.95 billion in the second quarter of 2022. This is a 19% year-on-year increase, which surpassed analyst forecasts for $17.368 billion in a Visible Alpha consensus cited by UBS.
The overall sales in the first half of 2022 climbed by 28% from the same period last year to about $37.1 billion. The Wall Street Journal said the group’s profit in the first half of 2022 rose 34% to $10.3 billion.
Growth in organic revenue was also 21%, continuing the first quarter’s patterns.
Finance chief Jean Jacques Guiony claimed that despite most brands raising prices by between 3 and 8%, the group had received little opposition from customers. He also predicted that the company would not make significant price changes in the year’s second half.
However, Guiony said revenues dropped by a heavy double-digit in China as the pandemic in the country disrupted businesses.
Skipping a specific number, Guiony said the performance in China was painful. The dull performance alleviated to some degree near the quarter’s conclusion. However, the finance chief said retail traffic in the nation was still far below that of the previous year.
According to the Wall Street Journal, Guiony said if the circumstances are right, Chinese sales can still rebound once the supply-chain problems that the nation had earlier this year are resolved.
But as Reuters cited, Guiony could not ensure any expectation for the strength of the Chinese market’s recovery.
After a brief period of easing, COVID-19 is rampaging across China again this month. Lockdowns and business control have returned sporadically as a result. On July 25, tech hub Shenzhen ordered 100 major companies into closed loop operation. On July 27, Wuhan isolated a district of 1 million people, curbing all businesses and public transport in the area.