LVMH didn’t just survive last year, it thrived.
The French luxury conglomerate, which helms 75 top-tier brands including Louis Vuitton and Tiffany & Co., raked in a record €64.2 billion ($71.5 billion) in revenue in 2021, according to annual results shared late Thursday. That’s a 44 percent increase compared to 2020’s total revenue of $49.7 billion and a 20 percent jump from 2019’s $59.8 billion. The upswing confirms LVMH is indeed back on track after the severe disruption caused by the global pandemic.
“LVMH enjoyed a remarkable performance in 2021 against the backdrop of a gradual recovery from the health crisis,” Chairman and CEO Bernard Arnault said in a statement.
Fashion and leather goods pulled in record profits. Courtesy of Louis Vuitton
The significant growth points to the enduring appeal of LVMH’s rarified products, as well as the unwavering demand for them. Fashion and leather goods, in particular, performed exceptionally well last year. The division, which includes the likes of Louis Vuitton, Dior, Celine, Loewe and Fendi, reached record highs, with organic revenue eclipsing 2019 levels by 42 percent to reach a total of $34.3 billion.
Bolstered by the $15.8 billion purchase of Tiffany, the watches and jewelry division hit record levels in 2021, as did the wine and spirits division, which is made up of heavy-hitters such as Moët & Chandon, Krug, Veuve Clicquot and Hennessy. The only two divisions that did not surpass 2019 levels were perfumes and cosmetics and selective retail which includes Sephora.
Regarding specific markets, LVMH said the US and Asia experienced strong revenue growth over the course of the year, while Europe is experiencing a more gradual recovery.
LVMH’s acquisition of Tiffany & Co. helped drive the watch and jewelry division’s revenue. Courtesy of Rachael Henning/Unsplash
Following the announcement, LVMH shares skyrocketed and were up 3.9 percent in early session trading on Friday. This means the luxury titan’s market value is currently sitting at about $390 billion at the time of this writing.
As for the coming year, LVMH’s formidable leader is confident that the company will stay at the top of the luxury sector.
“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 and are convinced that LVMH is in an excellent position to further strengthen its lead in the global luxury market,” Arnault added.
