By Mimosa Spencer
PARIS (Reuters) -Sales at the world’s top luxury group LVMH rose by 17% in the second quarter, with a sharp rebound in China helping to offset a decline in the United States, where inflation and economic turbulence have dented demand for high-end goods.
The French company, which owns 75 brands including fashion labels Louis Vuitton and Dior as well as Hennessy cognac and U.S. jeweller Tiffany, said on Tuesday that sales came to 21.2 billion euros ($23.4 billion) for the three months to the end of June.
The 17% increase at constant exchange rates was a touch better than analyst expectations for 16% growth, according to a Visible Alpha consensus.
Finance chief Jean-Jacques Guiony told reporters he was “very satisfied” with the rebound in China, which makes up the bulk of Asian sales. The region – excluding Japan – posted 34% growth compared to last year, when strict COVID-19 restrictions hit sales and emptied stores in China.
But he refrained from giving an outlook for the rest of the year.
The pace of the Chinese recovery and future growth prospects have become a major talking point among investors after lacklustre economic data and cautious comments from Cartier-owner Richemont weighed on luxury shares last week.
“The global mood is not one of revenge buying like we saw in 2021 and 2022, so we’re talking more about normalisation than anything else,” Guiony said.
“We have no visibility, we are not pessimistic and don’t have a reason to be in China. In the United States, we see it’s not as good as it was,” he added. U.S. sales fell by 1% over the period.
LVMH’s leather goods division, home to Vuitton and Dior, grew revenues by 21%, a tad above expectations for a 20% increase.
($1 = 0.9054 euros)
(Reporting by Mimosa Spencer, editing by Silvia Aloisi)
