The haze is slowly dissipating.
Through the 2022 annual performance reports of many international fashion giants, Dawning is illuminating the global fashion and luxury market.
According to the LVMH Group's 2022 performance report, the Group's full-year revenue in 2022 reached 79 billion euros, a year-on-year increase of 23%; Net income rose 17 percent to €14.1 billion, while profit from recurring operations increased 23 percent to €21.1 billion. All Group businesses achieved significant organic revenue growth, with record growth of 20% in the fashion and leather goods business, the Group's core business unit.
Among them, its core brand Louis Vuitton generated revenue of more than 20 billion euros for the first time; Celine's sales exceeded €2 billion, doubling in five years; In addition, Group brands such as Dior, Fendi, Loro Piana, Loewe and Marc Jacobs all recorded record revenues.
In a statement released after the close of the stock market, the group said that January had a good start and that LVMH was confident in its ability to grow over the past year, despite remaining uncertainty in the geopolitical and economic environment. Bernard Arnault, Chairman and CEO of the Group, said: "The performance in 2022 demonstrates the Group's ability to maintain its 'desire to create' despite economic environment and geopolitical challenges, and we are moving towards 2023 with confidence. ”
In addition, Zegna Group generated revenue of €1.49 billion in the 12 months ended December 31, 2022, up 15.5% from €1.29 billion in the previous year; The Swatch Group, which owns brands such as Breguet, Blancpain, Harry Winston, Tissot, Longines, Omega, Swatch and others, saw sales increase by 4.6% to CHF 7.5 billion (US$8.14 billion) and net profit by 6.3% to CHF 823 million in constant exchange rates in 2022; Salvatore Ferragamo's full-year revenue in 2022 reached €1.25 billion, up 10.2% from €1.12 billion in 2021; The Aeffe Group, which owns brands such as Alberta Ferretti, Moschino, Pollini and Philosophy di Lorenzo Serafini, saw revenue growth of 8.4% to €352 million in 2022.
In particular, it is worth noting that in the Chinese market, consumer confidence has also experienced unprecedented challenges despite many difficulties such as sales terminals, supply chains, domestic and foreign travel in the past year. However, in the short term, with the optimization and adjustment of epidemic prevention policies since the end of 2022, the gradual recovery of travel consumption, and the boost of tourism enthusiasm and holiday consumption since the beginning of 2023; In the long run, China's irreplaceable advantages in economic aggregate and market scale, as the world's most important fashion luxury consumer market, from the basis of retail structure, e-commerce development level, technological innovation ability and many other dimensions of important position, international luxury giants are still full of confidence in it, and constantly reveal the determination to continue to increase.
This not only shows the development blueprint of China's luxury market in 2023, opening a new window for the next step of China's economy, but also brings a new industrial environment and development opportunities for local retail, supply chain, technology innovation enterprises, etc.
Bernard Arnault pointed out at the LVMH Group's annual results press conference that the signals from China so far have been positive. "China is bound to start a new start to boost the economy, and we've seen signs of improvement in the weeks that began in January," he said. ”
Since the beginning of the year, LVMH shares have risen 15% to 797.4 euros, and the market capitalization stands at a high of 401.2 billion euros. Analysts have previously said that LVMH's biggest benefit in the near future comes from China's reopening.
However, in the process of recovering from the market environment, uncertainty will inevitably persist, which is a crisis consciousness that cannot be ignored by any luxury brand or group while maintaining long-term vitality and stability. Bernard Arnault therefore said: "The development is positive, but we remain vigilant. ”
Gildo Zegna, Chairman and CEO of Zegna Group, while combing through the group's key achievements over the past year, expressed optimism about the Chinese market, saying: "We are witnessing a rebound in the Group's business and in the industry as a whole. ”
At the same time, he is also one of the first luxury group executives to travel to Hong Kong and Macau after the optimization of the epidemic prevention policy, Gildo Zegna said: "I feel the vitality of consumers and investors. The situation in Hong Kong is still very good, and flights to Macau are also fully booked during the Spring Festival. The Chinese market is off to a good start. ”
Marco Gobbetti, CEO and General Manager of Salvatore Ferragamo, also said that although the fourth quarter of 2022 was affected by the epidemic and quarterly revenue was lower than expected, we are encouraged by the positive response of Chinese customers since the optimization of epidemic prevention policies and the opening of travel one after another.
Also in the fourth quarter of 2022, the Chinese market experienced losses and full-year sales were lower than analysts' consensus expectations, but for Swatch Group, the impact was clearly short-lived.
Driven by a rebound in demand in China, the Swatch Group expects strong growth in the coming year, saying: "Given the strong position of the Group's brands in all segments of the world and the data growth in Chinese mainland in January, the Group aims for a record year in 2023."
In addition, for many international fashion giants, the performance of different regions and categories in the annual financial report not only consolidates its capital value and competitive advantage in the corresponding stock market, but also brings a crucial direction for the balanced and coordinated development of regions and categories for the next long time, and the direction of group and brand expansion, so as to maintain long-term stability, and is also related to the decision-making trends of the group and brand executives.
LVMH Group
Over the past year, Europe, the United States and Japan have risen sharply by region; The fashion and leather goods business recorded 25% revenue growth in 2022 (organic growth of 20%);
Revenue from the Wine & Spirits business group grew by 19% in 2022 (organic growth of 11%);
The Perfumes & Cosmetics business group recorded 17% revenue growth (organic growth of 10%) in 2022;
The Watch & Jewellery business recorded 18% revenue growth in 2022 (organic growth of 12%);
Sephora's significant rebound further strengthens its position as a global leader in the distribution of beauty products.
Zegna Group
In addition to confidence in the Chinese market, Gildo Zegna cited the Group's strong performance in the US, Europe and the Middle East, with North America revenue reaching €295 million in 2022, up 54.1%;
EMEA revenue reached €520 million, up 36.8% compared to 2021;
Revenue from the Middle East and Africa region increased by 56.1% to €69.0 million;
By category, footwear performed well throughout the year, with steady growth in the luxury casual wear segment;
Textile revenue increased by 33.8% to EUR 137 million;
By brand, the Zegna division generated sales of €1.17 billion, up 13.7% year-on-year;
Thom Browne's revenue was €331 million, up 25.3% from 2021.
In addition, Thom Browne CEO Rodrigo Bazan noted that women's products are growing slightly faster than men's products, while children's products have nearly doubled.
Ferragamo
By region, the company's sales in the Japanese market increased by 11.9% in 2022 to 99.1 million euros, accounting for 7.9% of total sales;
Sales in EMEA increased by 24.7 percent to EUR 262 million;
Sales in North America increased by 22.3 percent to EUR 391.3 million, representing 31.1% of total sales.
Sales in Central and South America increased by 29.7% to EUR 89.8 million;
By product category, footwear sales rose 16% to EUR 564.2 million, accounting for 44.8% of total sales;
Sales of leather goods and handbags rose by 6% to EUR 525.5 million, or 41.7% of the total.
Sales in the ready-to-wear business rose by 19.7% to EUR 83.6 million.
In the face of the open door in 2023, the increasingly dazzling dawn of the industry, and the outstanding achievements and key experience of the past year, many international fashion giants are constantly grasping their core advantages and reviewing their own room for improvement, while gradually exploring the idea of upgrading and optimization to meet a new beginning.
As for LVMH, Bernard Arnault pointed out that staying "agile" at all times is the key main purpose of the senior restructuring, saying: "Just like in any human organization, you have to evolve. I think it's very bad to maintain a routine form of organization. ”
Faced with questions from analysts about how Louis Vuitton, the group's core brand, can continue to grow at the current pace while remaining attractive, Bernard Arnault said: "Don't think of scale as a 'threat' or 'hindrance', it's more important about quality – today, our products sell strongly, while maintaining rarity." ”
LVMH's actions on climate, forests and water conservation, the jobs created in France and around the world, and the nearly 215 million euros invested in employee training in 2022 have not only made a significant contribution to sustainable development issues such as human survival and the continuation of creativity, but also laid a long-term stable foundation for the Group's large-scale operations.
Gildo Zegna said Zegna Group will continue to fulfill its commitment to the environment, employees and communities. In addition, Zegna Group acquired a minority stake in Norda Run, a Canadian technical trail running shoe company, and has the right to gradually increase its stake in the next nine years, which also revealed its expansion in the outdoor luxury field through capital acquisitions.
Referring to the agreement reached with Farfetch last August, it is not difficult to see that Florence-based Ferragamo continues to bet on its digital layout and young consumer groups. WWD
Written by Du Mingwei
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