World's top luxury giant LVMH reports record sales of $86 billion, profit up in 2022

The world's top luxury group LVMH's sales and net profit both hit new heights last year, it said on Thursday. The jump was driven by strong demand in Europe, the United States and Japan.

Sales soared 23 per cent to 79 billion euros ($86 billion) and net profit jumped 17 per cent to 14 billion euros for 2022. Both are new records for the group, whose brands include Bulgari, Givenchy, Louis Vuitton and TAG Heuer.

"Europe, the United States and Japan rose sharply, benefiting from strong demand from local customers and the recovery of international travel. Asia was stable over the year due to developments in the health situation in China," LVMH said in a statement.

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"With the month of January having started well and despite an uncertain geopolitical and economic environment, LVMH is confident in its ability to continue the growth observed in 2022."

French billionaire Bernard Arnault heads LVMH. The company overtook Tesla and Arnault surpassed Twitter boss Elon Musk as the world's richest man late last year.

LVMH makes champagne, handbags, jewellery and other luxury goods. It is Europe's most valuable company, with a market capitalisation that soared to 400 billion euros ($430 billion) last week.

It saw an increase of 25 per cent in sales in its flagship division of fashion and leather goods, while for watches and jewellery they grew 18 per cent, the group said.

High-end jeweller Tiffany, which was bought by LVMH in 2021, saw a record year.

Wines and spirits also saw strong growth last year.

"We had a very difficult month of December in China," LVMH chief financial officer Jean-Jacques Guiony told reporters.

(With inputs from agencies)

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