Luxury goods giant LVMH on Tuesday posted better than expected second-quarter sales, with robust growth in the United States and Europe offsetting declining revenue in Asia.
The French group, which owns dozens of high-end labels ranging from Tiffany to Moet & Chandon, has tapped strong post-pandemic demand for its designer labels as socialising resumes and shoppers continue to spend savings from lockdowns, brushing off concerns about turbulent stock markets and rising prices.
LVMH said sales rose 19% year on year to 18.73 billion euros ($18.95 billion) in the three months to June 30, beating analyst expectations for 17.13 billion euros in a Visible Alpha consensus cited by UBS.
Growth pace in the second quarter was a tad slower than in the first three months of 2022, when group sales had climbed by 23%.
LVMH's organic revenue in Asia excluding Japan fell by 8% year on year, revealing the impact of new COVID-19 restrictions imposed in some Chinese cities from mid-March, though price increases had helped to reduce the impact on sales.
Demand for fashion and leather goods from star labels Louis Vuitton and Dior eased slightly from the high levels at the start of the year, with sales up 19%.
Sales in the wine and spirits division bounced back strongly from logistical and supply constraints earlier in the year, growing 30%, while selective retailing, which includes cosmetics brand Sephora, rose 20%.
The company's strong second quarter sets a benchmark for its rivals. Gucci owner Kering publishes first-half results on July 27, with Hermes reporting on July 29.