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The world’s largest luxury goods conglomerate LVMH has seen soaring demand for its fashion, handbags and jewellery continuing in 2022 after shoppers snapped up high-end wares over the holiday season.
LVMH Moët Hennessy Louis Vuitton recorded revenue of €64.2 billion in 2021, up 44% year on year and up 20% compared to 2019.
Organic revenue growth was 36% compared to 2020 and 14% compared to 2019.
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LVMH, which owns brands spanning Hennessy cognac to cosmetics retailer Sephora, said on Thursday fourth-quarter sales growth accelerated, reaching €20.04 billion overall, with growth led by the French group’s biggest earners Louis Vuitton and Dior.
The luxury labels propelled a 28% rise in sales of LVMH’s largest division, fashion and leather goods, on a like-for-like basis, beating analyst expectations for 16% growth.
Revenues for the business in the last three months of last year came in 51% above their 2019, pre-pandemic level, the group said.
All divisions posted double-digit growth, percentage-wise, with the fastest pace marked by the specialised distribution division, which includes Sephora, booking a 30% revenue rise over the quarter as consumers flocked to stores for holiday purchases at the end of the year.
Commenting on the performance, LVMH chief executive and chairman Bernard Arnault said: “LVMH enjoyed a remarkable performance in 2021 against the backdrop of a gradual recovery from the health crisis. 2021 was also a year in which LVMH was deeply moved by the tragic passing of Virgil Abloh, whose creative genius I would like to applaud. 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.”
At the annual general meeting on April 21, 2022, LVMH will propose a dividend of €10 per share. LVMH said that an interim dividend of €3 per share was paid on December 2 of last year and the balance of €7 will be paid on April 28, 2022.