LVMH Perfume&Cosmetics Sells $5.4 Bn in the first nine months
- Chaileedo Press
- Oct 13, 2022
- 2 min read
Dior beauty from LVMH performed well, where its classic products such as Sauvage, J'adore and Miss Dior still maintained high growth.
On October 11, luxury goods group LVMH reported its results for the first three quarters of 2022. LVMH recorded revenues of 56.5 billion euros(about $54.8 billion) in the first nine months, up 28% year-on-year, with organic revenue growth of 20%.
By geography, revenues in Europe, the United States and Japan have risen sharply since the beginning of the year, benefiting from strong demand from local customers and a recovery in international travel. While Asia, where China is located, recorded a lower level of growth in the first three quarters, although growth began to accelerate in the third quarter as some geographies eased restrictive measures.
Specifically for the business segments, Perfumes and Cosmetics recorded revenues of 5.577 billion euros(about $5.4 billion) in the first three quarters, up 19% year-on-year and up 12% organically; revenues in the third quarter were 1.959 billion euros(about $1.9 billion), up 10% organically.
Among them, Dior Beauty performed well and continued to consolidate its leading position in all markets, with classic products such as Sauvage, J'adore and Miss Dior still maintaining high growth, and the new Parfum d'Eau also achieving good market performance. At the same time, Dior Addict makeup and Prestige skincare series also contributed to the further rapid growth of the Dior brand.
In addition, the Guerlain brand achieved good growth thanks to its Abeille Royale skincare line, the Aqua Allegorialine and the boutique fragrance l'Art et la Matiere line. Givenchy Beauty's main performance was driven by its fragrance product line.
It is worth mentioning that during the reporting period, LVMH Beauty R&D Center and high-end apparel brand Stella McCartney collaborated to launch a new clean beauty and skincare brand, Stella, which focuses on the vegan and zero-cruelty concept with products such as cleansers, essences and hydrating creams, marking the apparel brand's return to the beauty sector after 19 years.
In fact, more and more apparel brands have recently started to test the beauty market, such as French fashion brand BALMAN announcing its cooperation with Estee Lauder to launch a series of beauty products. Apparel brand MLB also launched its MLB beauty products in September. As an international luxury giant, LVMH certainly will not miss the business opportunity of cross-border beauty.
Despite the fragrance and skincare business, LVMH's boutique retail business also saw rapid growth, with revenues of 10.095 billion euros(about $9.8 billion) in the first nine months, up 30% year-on-year and 20% organic growth. Sephora performed well with a strong rebound in-store activity with particularly strong growth in North America, France and the Middle East. However, the performance of luxury travel retail DFS remained weak due to the impact of the epidemic management policy in Asia.
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