The luxury fashion market was hit the hardest amid the pandemic. Revenues dipped, and client retention suffered immensely as well. However, in recovering slowly but steadily, we have French Luxury giant LVMH which recently recorded massive sales.
The world’s largest luxury goods group announced second-quarter revenues of $17.5 billion USD this week. The new figure is approximately 14 percent higher than the numbers reported in the same period two years ago.
As per the marquee, Louis Vuitton, along with top-shelf brands Dior, Fendi, Loewe, and Celine, reported the highest sales and profitability in the first half of 2021. Its operating margin also reached 26.6 percent, a 5.5point increase from 2019 reports.
Commenting on it, Bernard Arnault, LVMH’s CEO, in the statement said, “The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic.”
He further added, “LVMH is in an excellent position to continue to grow and further strengthen our lead in the global luxury market in 2021,” while Bernstein analyst Luca Solca in a research note similarly remarked, “This update should reassure, as the sector goes through an inflection.”
LVMH has also bolstered its marketing efforts to increase sales while consumers in China and the US particularly contributing with high spending. “It’s certainly not the mood of the various brands, particularly in fashion and leather…to stay quiet, particularly from a marketing viewpoint,” LVMH finance chief Jean-Jacques Guiony further stated.
Talk about beating the pandemic!