France’s LVMH has forecast first-quarter sales as U.S. and Chinese customers leave the epidemic behind them and jump on its biggest brands like Louis Vuitton and Dyer.
If trends continue in the first quarter, the world’s largest luxury group, controlled by billionaire Bernard Arnault, is on the verge of surpassing pre-epidemic levels this year, according to Thomson Reuters analysts.
The group was boosted in January by the addition of about 70 brands of U.S. jewelry Tiffany. It is Sent New York’s top executives to consolidate the $ 15.8bn acquisition and develop strategies to revive a brand best known for its Robin Egg Blue Gift Boxes.
LVMH reported sales of প্রথম 13.96 billion in the first quarter, up 30 percent on a biological basis from the same period a year ago when the coronavirus initiated the first lockdown and store closure. Analysts had expected sales of .6 12.6 billion, according to Faxet data.
Sales were also 8 percent higher than in the first quarter of 2019 before the epidemic hit, on a biological basis that surpassed the impact of acquisitions and currency movements.
The group’s all-important fashion and leather goods division generated 7 .7474 billion in revenue in the first quarter, up 52 percent from the same period last year and 3 percent more than the same quarter before the epidemic.
A quarter has continued the trend of catching up with China and the United States since last summer. Leading to recoveryWhen Europe is in crisis,
International travel is still a stagnant place, with free Chinese shoppers usually unable to shop in Europe’s fashion capitals. As it seeks to attract more local clients to Europe, luxury companies are trembling to meet China’s growing demand at home.
Nevertheless, the strong demand for Louis Vuitton handbags and Total & Chandon champagne shows that the rich Still treated They are in luxury content while other types of expenses such as travel and restaurants are mostly out of bounds. Analysts have warned that countries that have revived their economies while vaccinating their populations and have more options on how people can spend cash could fade the tailgate.
LVMH does not provide any financial direction, nor do its smaller competitors Dry And Richmont. According to consultancy Ben, sales reached nearly প 217 billion worldwide as a fifth, with the sector facing a tough end in 2020, predicting that recovery could take two to three years.
Analysts say the sector’s largest firms could retreat as soon as possible Small competitors. At the end of the second quarter, investors stood above 52% of LVMH shares, 54% of Richmont and 30% of Gucci owner Kering and equaled the shares.