Surging sales of fashion lines and handbags by Dior, Fendi and Louis Vuitton powered LVMH’s revenues in the second quarter.
The sales surge can be explained as coronavirus restrictions eased around the world and the luxury goods group edged out some rivals to raise its market share. The luxury goods industry is recovering from the health crisis, which shut down global travel and temporarily closed stores. The end of Covid-19 lockdowns across much of Europe is reviving demand in the region after a strong Chinese rebound.
The conglomerate said on Monday that its biggest revenue driver, Vuitton, as well as fashion brands Dior, Fendi, Loewe and Celine had posted record sales and profitability in the first half of 2021 and increased their market share.
Financial Chief Jean Jacques Guiony told reporters the group had “room for manoeuvre” on margins to be able to invest more in the second half of the year without impacting profitability.
Overall sales at the LVMH, which also owns champagne and cosmetics labels, rose by 84 per cent year-on-year in the second quarter on a like-for-like basis, which strips out currency swings, and stood at 14.7bn euros.
