Bernard Arnault’s LVMH reports strong Q4 as luxury shoppers chase ‘highest-end’ goods

The French powerhouse, home to Dior, Louis Vuitton, Sephora, and Tiffany’s, stunned with a 10% sales surge in the final quarter of 2023, surpassing analyst forecasts.

Despite global uncertainties, the ultra-wealthy are still splurging on high-end items, even in China, where luxury demand was in doubt due to a sluggish economy.

Now LVMH’s stellar performance is injecting fresh confidence into the luxury market.

“Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges,” LVMH’s billionaire CEO Bernard Arnault said in a statement, adding that the company was stepping into 2024 with confidence.

The optimistic tone sent LVMH’s shares up by the most in nearly two years, while other luxury company shares also rose following the earnings, including Gucci-owner Kering. 

Luxury industry banking on LVMH

LVMH’s performance is closely watched in the luxury sector, boasting a diverse portfolio from fashion and beauty to spirits and hotels.

The crucial fashion and leather goods segment saw a robust 9% sales uptick last quarter, while watches, jewelry, beauty, and fragrance brands also thrived. Sephora, in particular, delivered “exceptional performance” throughout 2023, according to LVMH’s earnings.

Just a few months ago, the Paris-based giant raised eyebrows with slower revenue growth in the third quarter, signaling potential shifts in the industry. This came after luxury enjoyed a significant boost from consumers’ pandemic-linked savings.

“The stock doubled between March 2020 and March 2021 and trebled to its high in April 2023, establishing the company as the real pandemic winner with very significant market share gains and raising profitability by…