The relaunch of China after lifting extreme restrictions to eradicate the coronavirus has revived all the familiar “good old habits” of wealthy countries, meaning sales of European high fashion houses and luxury goods are on the rise again. Yesterday at the beginning of the meeting in Bourse share price of your conglomerate LVMX reached a record €878.20 as Chinese flocked to his stores and bought handbags, jewellery, suitcases and perfumes. In the first quarter of this year, the French group’s sales rose 18%, twice as much as industry analysts had forecast. In particular, LVMH’s sales in China increased by a double-digit percentage, CFO Jean-Jacques Gioni announced midweek. Consequently, he added, “LVMH is overly optimistic about China in 2023. The numbers for the first quarter portend good results for the rest of the year as well.” However, he said that the group sees a slowdown in the growth of its business in the US, especially in cognac and leather goods sales.

“There is much to be excited about in LVMH’s latest results, even if the market in the United States doesn’t match them,” said Stifel analyst Rogerio Fujiori, describing LVMH’s first-quarter results as a strong start to 2023. shares of the company in Paris, its market value is about 440 billion euros, which is the highest among the groups on the Old Continent. Stocks are up 25% or more since the beginning of the year, mainly due to a reactivation of demand in China following the lifting of the coronavirus lockdown. The LVMH conglomerate of haute couture, watches, jewellery, luxury goods, cognac and champagne with many major brands is based in Paris and founded by tycoon Bernard Arnault. It is the first company in the industry to publish quarterly results in chronological order and they offer the market and investors to other groups. Rival Hermes International, which is releasing its January-March quarterly results this Friday, and Richemont, which also owns watchmaker Cartier, both boosted sales and profits thanks to China.

LVMH said demand surged across all regions in the first quarter as the public rushed to snap up luxury items from Christian Dior handbags to Tiffany rings. Japan posted the strongest quarterly growth with a 34% increase, followed by a 24% increase in Europe and a 14% increase in sales in the rest of Southeast Asia. While the U.S. market finally posted an 8% increase in sales, as Mr. Gioni pointed out, there was also a slight slowdown in haute couture, leather goods, jewelry and watches, and Hennessy Cognac, which rose sharply in price. hitting the demand.