French group LVMH reported a 17 percent rise in first-quarter sales, lifted by a return to strong business in China, which is serving as a relay of growth just as shoppers in the United States begin to ease off a months-long, post-pandemic splurge.
Sales at the world’s largest luxury company, which owns Louis Vuitton and Dior fashion houses as well as Hennessy cognac and US jeweller Tiffany, came to €21.04 billion ($23.10 billion) for the three months ending in March.
The 17 percent growth on an organic basis, which strips out the effect of currency fluctuations and acquisitions, was more than double analyst expectations for 8 percent growth, according to a Visible Alpha consensus.
The figures for LVMH, a bellwether for the high-end industry that has proven resilient to rising inflation and market turmoil, offered the first snapshot of the scale of the Chinese rebound after lockdowns in the country dented sales at the end of 2022.
They will also help placate investor concerns about a slowdown in the US market, where strong demand that boosted European fashion houses last year is showing signs of waning, particularly among younger, lower-spending shoppers.
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