LVMH sales soar as luxury goods come roaring out of pandemic

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Luxury goods conglomerate LVMH has steamed ahead in its second quarter, driven by soaring sales of Louis Vuitton handbags and Moët & Chandon champagne.

The luxury group, controlled by billionaire Bernard Arnault, benefited in its second quarter from strong demand from customers in both the US and China.

Sales for the period hit €14.7bn (£12.5bn) – 14% higher than the same period in 2019 before the pandemic.

“Demand is very strong everywhere in the world and in almost all of our categories,” said chief financial officer Jean Jacques Guiony. “We are coming out of the crisis with remarkable levels of profitability.”

LVMH’s fashion and leather goods division, which includes brands such as Louis Vuitton and Christian Dior, powered most of the growth and more than offset continued weakness in its “selective retailing” division that relies heavily on duty-free stores in airports.

Sales of wines and spirits also jumped, with champagne volumes up 10% more than the same period two years earlier.

LVMH’s operating margin rose to a new high of 26.6% in the first half, 5.5 points ahead of the same period in 2019.

Margins at fashion and leather goods were 40.8% in the first half, ahead of the 37.4% predicted by Jefferies analysts.