While others are struggling, luxury brands are taking a victory lap. It seems consumers are willing to spend on the things that make them look—and feel—good.
Let’s luxuriate with LVMH Moët Hennessy Louis Vuitton:
$43.39 billion: LVMH’s revenues for the first half of 2022, up 28% year over year (YoY), with all business groups achieving double-digit organic revenue growth.
$109.25 billion: Our forecast for US personal luxury retail sales this year, a 13.3% increase YoY.vRetail ecommerce sales of personal luxury products will see an even larger growth of 39.7%. Last year, LVMH’s US revenues totaled $19.61 billion.
49%: The percentage of LVMH’s H1 2022 revenue from fashion and leather goods, followed by selective retailing and other activities (travel retail and retail concepts) at 18%, watches and jewelry (13%), perfume and cosmetics (10%), and wines and spirits (9%).
24%: The organic growth of LVMH’s fashion and leather goods sales in H1 2022, the fastest growing category, followed by selective retailing (22%), and watches and jewelry (16%).
50%: The percentage of US teens and adults interested in using the metaverse to browse, try, or buy products and services from a brand, according to a Vox/United Talent Agency survey. CEO Bernard Arnault said the company is “looking closely” at the metaverse, but the company won’t rush an entrance into the space as he still wants to sell “real products,” per Reuters.
Why we care: Will luxury’s bubble burst? Or will shoppers’ preference for high-end goods carry the category through the back half of the year?
This was originally featured in in the Retail By the Numbers newsletter. For more retail insights, statistics, and trends, subscribe here.