LVMH reports “sharp rises” in global perfume sales despite geopolitical challenges
12 Oct 2022 --- Against an uncertain geopolitical and economic backdrop, LVMH Moët Hennessy Louis Vuitton, is confident in its current growth while maintaining a cost control policy and selective investment. The company saw revenue growth of 19% (12% in organic) over the first nine months of 2022 for the Perfumes & Cosmetics business group.
The company’s business was boosted by Christian Dior perfume sales and Sephora had “excellent performance with a strong rebound in its in-store activity.”
LVMH recorded revenue of €56.5 billion (US$54.7 billion) in the first nine months of 2022. This is 28% more when comparing the same period in 2021. In the third quarter, organic revenue growth was 19%, which is reported to follow the trends observed in the first half of the year.
Moreover, the company saw a sharp rise in the EU, the US and Japanese markets since the start of the year due to the demand from local customers and the recovery in international travel after the COVID-19 pandemic.
Specifically, a low level of growth was experienced in Asia during the first nine months of 2022. However, LVMH explains that the increase in the latest quarter accelerated due to the partial easing of health restrictions.
The Group’s strategy is focused on strengthening the demand for its brands by focusing on its products’ quality and distribution.
Fragrance leads global sales
The French beauty conglomerate reported that Christian Dior perfumes showed strong performance and were leading in all key markets.
“Perfumes grew sharply due to the continued success of Sauvage, Miss Dior and J’adore, further strengthened by its latest creation: Parfum d’Eau,” LVMH shares.
Christian Dior perfumes showed strong performance and were leading in all key markets.
“Dior Addict in makeup and Prestige in skincare also contributed to Maison’s rapid growth. Guerlain continued to grow, largely due to the vitality of its Abeille Royale skincare line, its Aqua Allegoria collection and its perfume line l’Art et la Matière.”
Moreover, Parfums Givenchy was reported to have successful sales and the Stella skincare line by Stella McCartney was launched in August using an environmental approach from the LVMH Beauty R&D center.
The skincare line carries the scent “high cliff,” created in collaboration with perfumer Francis Kurkdjian, founder and artistic director at Maison Francis Kurkdjian and perfume creation director at Parfums Christian Dior.
Strong Sephora retail
Revenue growth was 30% (20% organic) in selective retails in the first nine months of 2022.
Sephora, in particular, had a strong performance, especially in North America, France and the Middle East.
“Sephora’s omnichannel strategy received further investment to continuously improve the shopping experience of its customers both online and in-store. DFS, for its part, was affected by the persistent lack of travel, owing to ongoing health restrictions in Asia,” shares the company.
In related news, LVMH hailed a double-digit revenue growth, with Sephora marking a 181% profit spike. it delivered a 34% profit increase in the first half of 2022. Despite the growth, the company expressed it will move forward with “vigilance” in the latter half of the year due to the current geopolitical and health situation.
Edited by Venya Patel
