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Louis Vuitton owner LVMH’s third-quarter sales boosted by demand for US$3,000-plus Christian Dior bags
- Wealthy Chinese consumers lead the demand for luxury goods given ongoing curbs on international travel
- LVMH’s selective retailing unit – which includes DFS duty-free outlets and Sephora cosmetics store networks – saw organic revenue slump 29 per cent
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The owner of Louis Vuitton enjoyed an unexpected rebound in consumers’ appetite for dresses and monogram bags, buoying third-quarter sales.
Organic revenue at LVMH’s fashion and leather goods unit jumped 12 per cent in the third quarter as the world’s largest luxury company cited strong sales of items like Christian Dior’s US$3,000-and-up Bobby bags. Analysts expected a 0.9 per cent decline.
The shares surged as much as 6 per cent early on Friday in Paris after the company reported the results following the close of European markets on Thursday.
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Some consumers are eager to splurge despite a dire economic backdrop. LVMH’s performance shows how its leading brands are helping it weather the pandemic’s destructive economic consequences after lockdowns and travel quarantines sent the luxury industry into a deep slump.
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China is leading the rebound after it largely eradicated the virus domestically, and wealthy Chinese consumers are seeking comfort in retail therapy given ongoing curbs on international travel. Luxury firms including LVMH, Kering and Estee Lauder reported mid-double digit sales growth in China for the second quarter, while duty-free stores in Hainan recorded a 167 per cent jump in sales during the week-long October national holiday.
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