after year of record Sales and profits though are slowing down global growththe luxury sector is looking forward to reopening of China to make further expansion in 2023.
The world’s greatest luxury group LVMH posted a 23% jump in sales to a record of 79 billion euros ($86 billion) in 2022 and saw profits climb 17% to 14 billion.
The company’s CEO, Bernard Arnault, wants to keep it going path in 2023,” in risk of become boring.”
LVMH competitors also I managed blisters growth in Sales and profits last year.
Sales at Hermes jumped 29% to 11.6 billion euros and profits rose 38% to a record 3.4 billion.
Kering, despite the difficult time for its flagship brand, Gucci, managed a 15% increase in in Sales to 20 billion euros, while profits rose 14% to 3.6 billion.
Ferrari also Sales witnessed race To the record of Five billion euros, 13,221 deliveries vehicles last year.
2022 results I was hardly affected by the commotion in China is tied to the end of Coronavirus-related travel restrictions and their eventual lifting of the yearand with LVMH calls the month of december andair pocket”.
Only Hermes escaped unscathed.
“he was not there drop in passage in Our stores said Axel Dumas, CEO of Hermes.
The company’s sales rose 30.7 percent in in Asia Pacific region Except for Japan.
Gradual reopening of China – which abandoned the last of Strict travel restrictions of that it zeroCorona virus disease policy on January 8th should help that it economy 5.2% expansion in 2023, according to the International Monetary Fund latest weather forecast.
With restrictions on consumption, reopen of Chinese economy It is seen as a file growth an opportunity for 2023.
Analysts at UBS say 2023 will be “year of Chinese consumer,” noting that the pandemic restrictions prompted down the share of Chinese consumers in global luxury spending to 17% last yearcomparison with 33% before the pandemic.
A volcano ready to erupt
Many Chinese customers more more important than it was in 2019,” LVMH’s financial director Jean-Jacques Guyonne told reporters.
Guiony does not expect Chinese tourists to return to Europe, where they usually spend large sums on Luxury goods, before next year.
Instead, luxury collections focus on Chinese consumers in home.
LVMH’s Arnault said it was a no secret that China needs growth and that government likely to take steps To facilitate economic expansion as the country reopens.
“If that indeed Case – and it began in January – we all have reason To be confident, even optimistic about the Chinese market, he said in the presentation of LVMH 2022 results.
Arnaud Cadart said that China is a “volcano ready to erupt”. asset manager Flournoy Ferry.
“There is something incredible amount of savings made built upIncredible reserve in the hands of well-off degree you want purchase luxury goods added.
Kadart valued luxury market in China can jump by 30% this year.
Kering’s CEO, François-Henri Pinault, eventually visited China of Jan said he was surprised people congestion stores “like The virus was never in China.”
“This is the good signPinault said, who also welcomed moves By the Chinese authorities to promote domestic consumption.
