By Dhirendra Tripathi
Investing.com – LVMH stock (PA:LVMH) gave up most of the gains in Paris trading Friday but was still up 1% as the French luxury goods retailer projected strong demand for its handbags, watches and jewelry.
The shares rose as much as 5.8% in early trading.
The bullish outlook follows strong fourth-quarter numbers at LVMH that saw shoppers return in large numbers to buy its marquee brands like Louis Vuitton, Sephora, Christian Dior and Tiffany.
Revenue for the group topped 20 billion euro ($22 billion) in 2021, rising 27% with some of its largest segments managing the biggest growth.
LVMH's largest division -- fashion and leather goods – grew as much as 28% year-on-year and was second only to the 30% growth notched by selective retailing which includes Sephora. Selective retailing, along with perfumes and cosmetics, are the only two categories whose sales are still below 2019 levels. Notwithstanding that, Christion Dior perfumes and couture had a strong quarter, the company said.
This was the first time the group consolidated its 2020 acquisition of Tiffany in its numbers.
Wines and spirits, the group’s smallest business, grew the least at 18%. Growth in this business rebounded most strongly in U.S. and China, the company said.
LVMH's billionaire owner Bernard Arnault said LVMH could increase prices to protect margins in the current inflationary environment. However, he warned that international travel - which has been a big supporter of sales in the past - may not return before next year or 2024.
LVMH counts tourists from China and elsewhere in Southeast Asia as some of its biggest customers. Last year's numbers suggest that those buyers found way to satisfy their demand for luxury without actually visiting LVMH stores in the likes of Paris and New York.