LVMH, the renowned luxury conglomerate, has recently announced impressive sales figures for the first quarter of 2023. The company achieved a staggering 21.03 billion euros in sales, showcasing an organic increase of 17%, which is in line with the growth observed in 2022. One of the notable highlights of LVMH’s sales performance was its strong presence in the Asian market, coupled with stable sales in the United States.

Sales in Asia, excluding Japan, witnessed a remarkable growth of 14% compared to the same period last year. This impressive surge can be attributed to a significant rebound in China and other parts of Asia. China and the rest of Asia collectively accounted for 36% of LVMH’s total revenues, making it a crucial market for the conglomerate. The resurgence in China’s economy, combined with the relaxation of anti-Covid measures, has played a pivotal role in restoring normalcy, thereby attracting customers back to physical retail stores. CEO Jean-Jacques Guiony considers this as an encouraging sign for the remainder of the year and anticipates robust sales growth in China.

Moreover, sales in South Korea and Japan also experienced an upward trajectory, primarily driven by the demand from Korean and Chinese tourists, as well as local customers. The allure of luxury goods continues to captivate consumers in these regions, contributing to LVMH’s overall success.

In Europe, LVMH saw an impressive organic increase of 24% in sales. Countries like France and Italy particularly showcased strong sales performance, despite the prevailing economic challenges. This signals the resilience of the luxury market in these regions, further solidifying LVMH’s dominant position.

Sales in the United States have also displayed promising results, with an organic growth rate of 8%. American tourists have been contributing to this growth by making luxury purchases in Europe. Additionally, the presence of Sephora, a renowned beauty retail chain owned by LVMH, has significantly boosted sales in the US market. Although there might be a slight slowdown in the US luxury goods market, LVMH retains confidence in its performance and the potential for growth.

To enhance your understanding of luxury conglomerate LVMH’s strong sales performance in Asia and stable sales in the US, you can refer to the following useful links:
1. LVMH official website
2. LVMH on Reuters