LVMH set new records in 2021 as shoppers returned in force to buy the luxury goods it sells online and in-store in 2021, reports the RetailX Luxury Sector report.
LVMH Moët Hennessy Louis Vuitton reported revenues of €64.2bn (£53.4bn) in 2021 – 44% up on 2020, which was hit by the pandemic – and 20% ahead of pre-pandemic 2019. Profit from recurring operations came in at €17.1bn (£14.2bn), more than double (+107%) the €8.3bn (£6.9bn) reported in 2021, and 49% up on 2019 and the group reported net financial income after expenses and before tax of €53m (£44m), an improvement from a loss of €608m (£505m) in 2020 and a loss of €559m (£464.6m) in 2019.
The group’s brands include Louis Vuitton, ranked Leading in RXUK Top500 research, Christian Dior, whose Dior website is ranked Top150, and Fendi, ranked Top500 as well as Celine and Loewe, which all achieved record sales and profitability. Online sales grew.
In its perfume and cosmetics division where organic revenue – a measure that combines like-for-like with constant currency – grew by 27% on last year and was stable on 2019, “LVMH’s major brands chose to continue a policy of selective distribution, limiting promotions and growing online sales on their own website.” Christian Dior’s Sauvage became the highest selling fragrance in the world, a first for a male fragrance – although that growth includes women’s lines.
And in its selective retailing division (organic revenue +18% on 2020, -18% on 2019), Sephora saw a strong rebound in its business, bought beauty pureplay Feelunique – which is ranked Top250 in RXUK research – during the year and signed a partnership with Zalando.
Bernard Arnault, chairman and chief executive of LVMH, says: “LVMH enjoyed a remarkable performance in 2021 against the backdrop of a gradual recovery from the health crisis. The Group’s record results could not have been achieved without the efficiency and exceptional ability of our teams to adapt and notably to remain connected to our customers, continuing to inspire dreams, despite the crisis.”
He paid tribute to Virgil Abloh, men’s artistic director of Louis Vuitton since 2018, who died during 2021. He also said the group had worked to promote biodiversity, protect nature and preserve skills and craftsmanship during the year.
And he adds: “Despite the uncertainties that remain at the start of this new year, which continues to be disrupted by health concerns, we approach 2022 with confidence and are convinced that LVMH is in an excellent position to further strengthen its lead in the global luxury market.”
