Agenda-setting intelligence, analysis and advice for the global fashion community.

How LVMH Dominates the Luxury Business

Above all, the French group benefits from the sheer scale of its megabrand Louis Vuitton, setting in motion a virtuous cycle that powers profit generation, explains Luca Solca.

A model walks the runway carrying a Louis Vuitton duffel. — LVMH, above all, benefits from the sheer scale of its core megabrand Louis Vuitton, setting in motion a virtuous cycle that powers profit generation, writes Luca Solca. (Getty Images)

Luca Solca

27 July 2022

BoF PROFESSIONAL

LVMH kicked off a “super week” of luxury results with a strong second-quarter performance. Group sales grew by 19 percent to €18.73 billion, beating consensus expectations of €17.13 billion, despite soaring inflation and fresh Covid-19 lockdowns in the critical China market. EBIT also surpassed expectations by 8 percent, and the strong performance sets a high bar for luxury rivals set to report

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