What: The luxury conglomerate reported revenues increasing 17% in the first quarter, attributed to a strong demand for leather goods, sharp increases at Sephora and DFS, and a strong rebound in Chinese demand.

Why it is important: The numbers were double analysts’ expectations for 8% growth and represent an acceleration from Q4 in 2022.

Revenues at LVMH totaled EUR 21.04 billion for the three months ending March 31, making an acceleration from the fourth quarter, when sales gained 15%.

All business divisions except wines and spirits reported double digit growth, with strong momentum in Europe and Japan and a steady performance in the US.

The company registered significant pick-up in China following the lifting of health restrictions, boding well for the rest of the year, and putting the company back where it was prior to the complicated period of 2022. There is sustained interest in fashion, leather goods, and jewelry especially, with cosmetics being the only category remaining a little under pressure in mainland China.

Overall, revenues in the fashion and leather goods division rose 18%, with Louis Vuittion and Dior being the top performers, in addition to Celine, Loewe, Loro Piana, Rimowa, and Berluti also performing well.

Japan improved 34%, followed by 24% in Europe, 14% in Asia excluding Japan, and 8% in the US. Growth is normalizing in Europe, while the US is “good but softer.”

In selective retailing, revenues jumped 28% in organic terms, with Sephora seeing excellent performance in North America, Europe, and the Middle East.

The duty-free operator, DFS, benefitted from the recovery of international travel and gradual return of travelers to flagship destinations of Hong Kong and Macau and could return to breakeven after a difficult 2022.

Watches and jewelry grew 11% with a very good performance in high jewelry. Chaumet and Tiffany & Co. saw an excellent start to the year and the conglomerate’s watchmaking maisons reported excellent progress.

Perfumes and cosmetics saw a 10% increase in organic revenue growth, with fragrances performing very well, followed by makeup and the skin care business being flattish.

LVMH proclaims ‘excellent’ start to 2023 as Q1 sales rise 17%