The empire of the richest man in the world is breaking its own records
The luxury corporation LVMH – which includes Louis Vuitton, Dior and Givenchy – reported that sales for 2022 jumped 23% to a record $86 billion, with net worth jumping 17%
Frenchman Bernard Arnault recently became the richest man in the world, and he continues to reap achievements as the luxury goods group he owns, LVMH, saw a 9 percent increase in its sales in the fourth quarter, and was able to cope with the severe corona disruptions in China thanks to the holiday season in Europe and the US.
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The most prestigious corporation in the world – which includes the brands Louis Vuitton, Givenchy, Dior and dozens of other most prestigious companies – announced that its sales in 2022 jumped by 23 percent, to a record of 79 billion euros ($86 billion), when the net profit jumped by 17% to 14 billion euros, which is 15.2 billion dollars – which also marks a record.
Sales reached 22.7 billion euros ($24.65 billion) in the final three months of last year, with the 9 percent increase beating analysts’ expectations of 7 percent growth.
And yet, this is a slowdown from the 20% growth recorded in the first nine months of 2022, due to the disruptions in China that resulted from the severe lockdowns and then the easing of the ‘zero-Covid’ policy that caused a very sharp jump in the number of confirmed cases.
“China fell sharply in the fourth quarter,” said the group’s chief financial officer, Jean-Jacques Joyoni, who noted that the epidemic “spread like wildfire,” causing problems in warehouses, stores and distribution networks. Before the pandemic, by the way, China was the main source of profits for luxury companies.
The LVMH corporation – which includes luxury brands of fashion, jewelry, spirits and cosmetics – is considered the most prestigious factor in the industry, although it does not list all of its brands.
In 2022, it was reported that my main company, Louis Vuitton, passed 20 billion euros in sales for the first time – about a quarter of the group’s total revenue for the year, which also doubled the sales of 2018.
The big boss, Bernard Arnaud, said that if the trends seen at the beginning of 2023 continue, they will have “another very good year”, adding that “our products continue to sell exceptionally well”.
As you may recall, LVMH’s stock hit new highs this month, putting the group’s market cap at 400 billion euros, cementing its lead as Europe’s most valuable company.
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