LVMH Profits are Out of This World

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Well, it’s no wonder Bernard Arnault is one of the richest men in the world. The company he heads, LVMH Moët Hennessy Louis Vuitton (LVMH), as a giant luxury goods conglomerate, just keeps on soaring. The just-announced financial results for 2022 show a 23% hike in sales revenue and recurring profit (17% organic growth).

Along with the financials, Arnault stated:

“Our performance in 2022 illustrates the exceptional appeal of our Maisons and their ability to create desire during a year affected by economic and geopolitical challenges. The Group once again recorded significant growth in revenue and earnings. Our growth strategy, based on the complementary nature of our activities, as well as their geographic diversity, encourages innovation and the quality of our creations, the excellence of their distribution, and adds a cultural and historical dimension thanks to the heritage of our Maisons.”

LVMH reports growth in all business groups, highlighting the success of Fashion and Leather Goods as “a remarkable performance” in reaching record levels with organic growth of 20% (25% as reported). The company specifically mentions brands Louis Vuitton, Christian Dior, Celine, Fendi, Loro Piana, Loewe and Marc Jacobs, although its financials do not break down numbers by brand.

Geographically, LVMH points to Europe, the United States, and Japan for its revenue growth due to “strong demand from local customers and the recovery of international travel.” It also claims that Asia including China was stable given developments in the medical situation.

As for 2023, Arnault maintains that the year is off to a strong start and “we approach 2023 with confidence but remain vigilant due to current uncertainties.”

And for those of you who own LVMH stock, the company will be recommending a dividend of €12 per share. Raising the question: which is the better investment – the LVMH stock or one of its heralded bags. Let us know what you prefer.