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LVMH luxury sales rebound as Dior and Louis Vuitton drive growth
🇵🇱 Poland /Economy & Trade

LVMH luxury sales rebound as Dior and Louis Vuitton drive growth

From Rzeczpospolita · () Polish

Translated from Polish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • LVMH reported a 1% organic sales increase in its fashion and leather goods segment, marking the first growth in two years.
  • The luxury giant benefited from strong performance in the United States and renewed demand for Dior products under new creative director Jonathan Anderson.
  • Despite geopolitical tensions and price hikes, LVMH's overall revenue rose 3% organically in the second quarter, exceeding analyst expectations.

Luxury goods giant LVMH has seen its fashion and leather goods sales rebound, with a 1% organic increase in the second quarter, the first growth in two years. This turnaround signals a potential recovery for the sector after a period of geopolitical tensions and price increases. The company's performance was bolstered by strong results in the United States and a surge in demand for Dior products, particularly following the introduction of new collections by creative director Jonathan Anderson.

Dior developed somewhat faster

— Cécile CabanisLVMH's finance director Cécile Cabanis commenting on the performance of the Dior brand.

Louis Vuitton and Dior, key brands within the LVMH portfolio, are driving this sales improvement. "Dior developed somewhat faster" than the overall segment, according to LVMH's finance director Cécile Cabanis. She noted that Anderson's new collections have successfully boosted demand for Dior handbags and ready-to-wear items, with the brand seeing double-digit growth in the U.S. and Japan. Cabanis dismissed theories that the luxury market operates as a zero-sum game, where one brand's gain necessitates another's loss.

Overall, LVMH's total revenue grew 3% organically to 19.5 billion euros in the second quarter, surpassing analyst forecasts. While operating profit for the first half of the year dipped 4% due to currency fluctuations, the operating margin remained stable at 22.5%. The company's resilience is evident, even as global events like the conflict in the Middle East slightly impacted its organic growth rate by 1 percentage point in the second quarter, affecting tourism in key shopping destinations in the Persian Gulf.

It looks like I am at the head of 'the last royal family of France.'

— Bernard ArnaultLVMH Chairman Bernard Arnault on social media, responding to media reports about his family and influence.

In a separate development, LVMH Chairman Bernard Arnault made his first post on social media platform X. He thanked supporters and addressed recent articles in "Le Monde" that questioned family unity and his extensive influence. Arnault asserted his family's strength, stating, "It looks like I am at the head of 'the last royal family of France.'" He expressed hope to "spare the energy of all those who elsewhere count on the disintegration of the family to sell newspapers. They will wait a long time."

They will wait a long time.

— Bernard ArnaultLVMH Chairman Bernard Arnault expressing confidence in his family's stability amidst media scrutiny.
DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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