CBO reporter Guo Fen
LVMH Group achieved sales revenue of 124.124 billion yuan in the first quarter, an increase of 30% year-on-year. However, due to the impact of the epidemic and store closures, revenue in Asia increased by only 8%, compared with 86% in the same period last year.
"Despite the continued impact of the situation in Ukraine and the crisis of the epidemic, the company has a good start to 2022." Yesterday (April 12), French luxury giant LVMH Group released its 2022 first quarter financial report.
According to the financial report, the group achieved revenue and operating income of 18 billion euros (about 124.124 billion yuan) in the first quarter, an increase of 29% over the same period in 2021. LVMH said it achieved double-digit revenue growth in all its businesses except alcohol in the first quarter. The U.S. and Europe also achieved double-digit revenue growth; asia also continued to grow in the quarter, despite China tightening health restrictions in March.
01
Perfumes, makeup, and skincare are fully developed
Beauty sold $13.1 billion in the first quarter, up 17 percent
In terms of business, LVMH Group subdivides its main business into five categories: liquor, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and boutique retail.
Among them, the fashion and leather goods business, which accounts for the largest sales revenue of the Group, achieved sales revenue of 9.123 billion euros (about 62.91 billion yuan) in the first quarter, recording a 30% organic revenue growth year-on-year, ranking first among all business segments. Several brands, including Loro Piana, JW Anderson's Loewe and Marc Jacobs, performed well. In addition, driven by the success of the Kim Jones series, Fendi recorded solid growth. Thanks to the great success of hedi Slimane's ready-to-wear and leather goods collection, Celine has achieved very strong growth.
In terms of perfumes and cosmetics, LVMH achieved sales revenue of 1.905 billion euros (about 13.136 billion yuan) in the first quarter of 2022, an organic increase of 17% year-on-year. The earnings report specifically praised the contributions of brands such as Dior, Guerlain, Givenchy, make up For Ever and others to the sector.
Among them, Dior has achieved good performance in perfumes, makeup and skin care, especially driven by the US market, Dior's market share has achieved strong growth.
First, the perfumes represented by classic fragrances such as Miss Dior, Sauvage and J'Adore continued to perform well, and La Collection Privée also showed superior market expansion capabilities; secondly, in terms of makeup, the relaunch of Forever fluidfoundation and the emergence of Dior Addict lipstick introduced sales growth; in addition, On skincare ranges Prestige and Capture Totale, Dior performed well.
At the same time, Guerlain (Guerlain), driven by perfume, is also in good shape. This is mainly due to the launch of the new Aqua Allegoria collection and the new boutique perfume l'Artet la Matière collection. In addition, the Abeille Royale skincare range also contributes to the brand's performance.
Notably, givenchy's Fra che Irresistible and Gentleman series of perfumes continue to be successful, Maison Francis Kurkdjian continues to grow rapidly, And The launch of Payling's new Boi-ing Bright concealer and the launch of Make Up For Ever HD SKIN have all contributed to the growth of the market.
02
Sephora China's passenger flow declined due to the epidemic
The Group's Asian region grew only 8% in the first quarter
In addition to beauty brands, LVMH Group also owns boutique retail businesses such as Sephora and DFS Global Duty Free.
In the boutique retail business, organic revenue in the first quarter of 2022 increased by 24% compared to the same period in 2021, resulting in sales revenue of 3.04 billion euros (about 20.963 billion yuan). Among them, Sephora achieved excellent results in the quarter, mainly driven by the recovery of perfumes and cosmetics. In the northern United States, France and the Middle East, Sephora stores have a stable performance. However, due to hygiene restrictions in China, stores have reduced foot traffic.
DFS revenue increased during the quarter, but revenue levels were lower due to continued weakness in international travel.
Regionally, the U.S., Japan and Europe all recorded double-digit growth of 26%, 30% and 45% in the first quarter of 2022, while asia saw revenue growth of only 8% due to COVID-19 restrictions in March, compared to 86% in the same period last year.
LVMH Chief Financial Officer Jean-Jacques Guiony said the group had been forced to close 15% to 25% of its stores in Chinese mainland since March 15 due to the impact of the epidemic, including the containment management in Shanghai, which has hampered growth. "But China has proven capable of taking very strong and extensive measures to contain the outbreak in a fairly short period of time, and we believe that China's major luxury market will rebound as quickly as it has in the past."