With geopolitical turmoil, soaring inflation and sinking stock markets, you might not imagine the current economic landscape would make the best backdrop for luxury goods spending sprees. LVMH’s latest results, however, strongly suggest otherwise.
Moët Hennessy Louis Vuitton (LVMH) reported on Tuesday that its sales had jumped 28% in the first 9 months of 2022, a remarkable growth rate on a year (2021) that was already the company’s best ever. Sales in their Fashion and Leather Goods division jumped a particularly impressive 31%.
If you think of a random high-end luxury product, there’s a reasonable chance it is owned by LVMH. The company’s 75 brands, which LVMH calls "houses", include Louis Vuitton, Christian Dior, Tag Heuer, Loro Piana, Bulgari, Hublot and — the most recent addition — Tiffany & Co..
Wolf in cashmere
Founded in 1987 following the merger of Louis Vuitton and Moët et Chandon and Hennessy, LVMH’s CEO Bernard Arnault has been a prolific dealmaker in the luxury space, with, ironically, an eye for a bargain. The company’s ~$16bn acquisition of Tiffany & Co. last year, roughly doubled the size of their Watches & Jewelry division, in a classic run of the company’s buy-scale-diversify playbook.
However, Arnault, who has been dubbed the "wolf in cashmere", isn't resting on his laurels. LVMH has recently acquired a minority stake in Queens based brand Aimé Leon Dore and has even been rumored as a potential buyer of Ralph Lauren — more deals to pop their own champagne to.
