LVMH Sales Soar as Shoppers Splash Out on Handbags; Shares RiseBy
Organic revenue at fashion unit surpasses pre-pandemic level
Results will probably prompt earnings upgrades: Bernstein
Sales of Louis Vuitton handbags and the easing of lockdowns across the world helped revenue soar at fashion houses owned by LVMH.
In a bumper quarter for the owner of some of the world’s best-known luxury brands, like-for-like sales rose 84% last quarter, outstripping analysts’ expectations.
Demand for fashion and leather goods, particularly at Louis Vuitton, Christian Dior, Fendi and Celine, fueled the gain and showed consumers’ appetite for luxury goods as they emerge from pandemic restrictions and vaccination campaigns accelerate.
LVMH benefited from an easy comparison with 2020, when many stores were shut due to early pandemic lockdowns. Even so, the report will probably prompt earnings upgrades for others in the industry because LVMH is seen as a bellwether, according to Luca Solca, an analyst at Sanford C. Bernstein.