What: LVMH is cautiously confident heading into 2023 as signs of recovery in China pick up following the decision to reverse COVID-19 restrictions.

Why it is important: Despite the uncertain economy, LVMH is confident in its ability to continue to grow following its success in 2022.

Following a year of record results in 2022, LVMH is confident it can see the same success in 2023. Especially with COVID-19 restrictions loosening in China, the conglomerate is optimistic about the Chinese market.

Shares in LVMH have risen 15% since the beginning of the year as markets predict that China’s reopening will support the ongoing strength of luxury sales. The company became the first in Europe with a market capitalization of more than 400 billion euros.

In 2022, LVMH posted revenues of 79.2 billion euros, up 23% year-on-year; its net profit rose 17% to 14.1 billion euros, and profit from recurring operations was up 23% to 21.1 billion euros.

LVMH confident on Chinese recovery