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Chinese shoppers lift sales for Louis Vuitton-owner LVMH

REUTERS | Updated: 2018-01-27 06:01
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LVMH, the world's biggest luxury goods maker, posted an 18 percent rise in operating income for 2017, as robust demand from China boosted sales and spurred on some of its major brands like Louis Vuitton.

The French company, whose 70 labels range from Dom Perignon champagne to fashion houses like Fendi and Givenchy, posted record revenues and operating income for 2017 as it rode an industry turnaround and increased online sales.

"China has had a good comeback," Bernard Arnault, LVMH's billionaire chairman and chief executive, told a news conference on Thursday, adding other regions including the United States also performed strongly. "These global business trends are continuing into this year," he said.

In an industry vulnerable to shifting trends and challenges such as falling tourist travel or a crackdown on luxury gifts in China that hurt manufacturers in recent years, companies are now scrambling to make sure they capitalize on improving demand.

LVMH rival Kering has benefited from the upturn, attracting young consumers with its new, colorful Gucci designs, while Richemont, whose brands include Cartier, reported solid appetite in the Asia-Pacific region in the last three months of 2017.

At LVMH, the Louis Vuitton brand remains the biggest earnings driver, accounting for more than half of group profits, propelled last year by collaborations with streetwear label Supreme and the launch of a smart watch.

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