LVMH Sales Surpass 2019 as Luxury Defies Pandemic Gloom

(Bloomberg) -- LVMH’s first-quarter sales soared, surpassing the level of 2019 as the luxury goods industry’s recovery from pandemic-induced slump accelerated.

Revenue at the fashion and leather goods unit jumped 52% on an organic basis from a year earlier, the company said in a statement Tuesday. Analysts had expected growth of 30%. That division has been the key driver for LVMH throughout the Covid-19 crisis, benefiting from the growth of the Dior and Louis Vuitton brands.

In a sign of the market’s buoyancy, LVMH’s first-quarter performance even topped the same period in 2019, with total organic sales rising 8%. The company’s American depositary receipts climbed as much as 3.9% after the release of results.

LVMH’s sales may indicate how well major fashion houses have been able to sustain demand outside of places like mainland China, which has emerged from the pandemic and reopened shops. With catwalks having gone virtual for most of the past year, Dior and Vuitton have tried to entice customers by showcasing collections in sumptuous locales through platforms such as Instagram.

First-quarter revenue at the luxury giant rose 30% on an organic basis to just under 14 billion euros ($16.7 billion). Analysts had expected 12.7 billion euros.

The U.S. and Asia enjoyed strong growth, while Europe is still affected by the crisis because of store closures across several countries and the suspension of tourism, LVMH said in the statement.

Shares of LVMH have surged 71% in the past year.

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