LVMH is cashing in on booming demand in China even as business in the US slows.
The French luxury fashion conglomerate, whose brands in include fashion labels Givenchy, Celine, Stella McCartney and Louis Vuitton, said total revenues rose 17 per cent to £36billion in the first half of the year.
The jump came as a 24 per cent rise in sales in China offset a mere 3 per cent increase in the US.
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LVMH, which also owns Christian Dior and Tiffany, said customers in the US were holding off on buying expensive handbags and jewellery due to economic uncertainty.
By contrast, it is cashing in on huge postpandemic growth in China where consumers are once again enjoying life free from lockdown curbs.
Chief financial officer Jean-Jacques Guiony, said: ‘Last year, the group was pulled up by the United States because China was slowing down.
‘And this year, the United States is slowing down, yes, but we are drawn by Asia. This geographical balance is absolutely fundamental.’
He added: ‘The global mood is not one of revenge buying like we saw in 2021 and 2022, so we’re talking more about normalisation than anything else. We have no visibility, we are not pessimistic and don’t have a reason to be in China. In the United States, we see it’s not as good as it was.’
The company is run by Bernard Arnault, the world’s second-richest man whose fortune is estimated by Forbes to be £181billion.
Last night Arnault said: ‘LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty. ‘Thanks to the desirability of our brands, we approach the second half of the year with confidence.’
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