The world's biggest luxury group logged double-digit growth in the U.S. and Europe, fending off concerns about the outlook for growth and inflation.
“In the current geopolitical context and in light of the ongoing impact of the pandemic, LVMH remains both vigilant and confident at the beginning of this year,” the group said in a statement.
Revenues in Asia rose by just 8 percent, compared with an 86 percent jump in the same period last year, as store closures in China outweighed the positive performance of other countries like Singapore and South Korea. But Guiony was confident that the key Chinese luxury market would rapidly bounce back, as it has in the past.
“The business we do in 2022 with tourists is significantly on the way up compared to 2021, but obviously, only a fraction of what it was in 2019,” he said. “On the one hand, we can be pleased with the level of tourism with Europeans and Americans wherever they go. But on the other hand, we lack entirely any form of Asian tourists, either within Asia or on other continents.”
However, the direct impact of the measures is expected to be limited as the importance of Russia and Russian nationals for the luxury goods sector has declined over the years and is now “relatively immaterial,” according to a recent report from Morgan Stanley. The bank estimated that for companies such as LVMH and Kering, Russians account for about 1 percent of worldwide sales.
As the world’s largest luxury group, and the first to report quarterly sales, LVMH will set the bar for the rest of the sector. Hermès International is scheduled to publish first-quarter sales on Thursday, with Kering to follow on April 21. Meanwhile, Compagnie Financière Richemont is due to report annual results on May 20.
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