While it recently passed the 400 billion euro market capitalization mark – a first for a European company – the world’s number one luxury goods company announced on Thursday new record results in 2022.
LVMH’s sales reached 79 billion euros and a net profit of 14 billion euros, thanks to strong business growth in Europe and the United States.
“We are approaching 2023 with confidence, but given the current uncertainties, we will remain vigilant and rely on the desirability of our Houses and the agility of our teams to further strengthen our lead in the global luxury market,” CEO Bernard Arnault said, quoted in a statement.
The luxury giant, which owns the brands Louis Vuitton, Dior, Tiffany and Moët & Chandon, among others, saw its sales jump by 23% in 2022, almost 15 billion more than the previous year. Net profit grew slightly less quickly, by 17%. The boss stresses the “strong increase” of its sales in Europe, the United States and Japan, but “Asia is stable over the year due to the evolution of the health situation in China“.
Profitability is stable with a current operating margin of 26.6%. The luxury giant remains buoyed by its flagship Fashion and Leather Goods division (Louis Vuitton, Dior, Céline, Fendi…) whose sales rose by 25% to 38.65 billion euros. In early January, the group announced the renewal of the leadership of its two largest brands Louis Vuitton and Dior, with the appointment of Pietro Beccari as head of the first and Delphine Arnault, daughter of Bernard Arnault, to head the second.
Now considered the largest market capitalization in Europe, LVMH will pay a dividend of 12 euros per share to its shareholders. It was 10 euros for the previous fiscal year. 2022 will also have been the year in which Bernard Arnault and his family became the world’s first fortune ahead of Elon Musk, boss of Tesla, SpaceX and Twitter, according to the Forbes ranking.
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