The world’s biggest luxury group LVMH reported stronger-than-expected sales growth in the first quarter despite the resurgence of Covid-19 disruptions in the key Chinese market and economic volatility caused by the war in Ukraine.
Helped by strong sales at its biggest brands Louis Vuitton and Dior, first-quarter revenue grew 23 per cent on an organic basis, a similar pace to the fourth quarter, to reach €18bn. Analysts had expected 17 per cent organic growth, which strips out the effects of currency moves and acquisitions.
The group, owned by French billionaire Bernard Arnault, surfed a luxury boom in the US and China last year, which sent its shares sharply higher. But investors have punished the luxury sector this year because of concerns over slowing global growth and the lingering effects of the pandemic in China, which is the second biggest luxury market after the US.