LVMH cheers the 'spectacular' return of Chinese tourists | CNN Business

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LVMH posted record results Thursday, and expressed confidence that China’s luxury market would bounce back this year as the country continues to reopen

. The world’s biggest luxury group logged revenue of €79.2 billion and profit of €21.1 billion for 2022, both up 23%. In a presentation, the company said it was buoyed by the recovery of international travel and strong demand from local customers across Europe, the United States and Japan. And in the coming months, “we have every reason to [be] confident, indeed optimistic, on the Chinese market,”

\n \n CEO Bernard Arnault said on a conference call. “There are green shoots in China,” he told analysts. “In Macao, where Chinese can now travel to, the change is quite spectacular. Stores are full. It’s really come back [at a] very strong pace.” The owner of brands such as Louis Vuitton and Sephora also has various stores in France that are ready to welcome Chinese shoppers as more travel restrictions are rolled back, Arnault said.

was seeing signs of recovery, it was still “early days.” “We can’t guarantee it’s going to continue like that,” he said. “[But] if it continues as it is, it will be an excellent year.” Chief Financial Officer Jean-Jacques Guiony also cautioned that the current level of customer traffic in China was still about 40% below pre-pandemic levels, and that the economic outlook was tough to predict.

proposed to hike its 2022 dividend on Thursday, from 10 euros to 12 euros per share. The proposal will be up for approval at the company’s general meeting in April. is the latest luxury giant to deliver an upbeat forecast over China’s reopening. Last week, Swatch Group\n \n , the owner of Omega and Harry Winston, predicted “a record year in 2023,” based on strong sales growth it had already seen this month in China. “After the end of Covid measures, consumption quickly recovered, not only in China,” but also in the nearby cities of Hong Kong and Macao, the Swiss watchmaker said in a statement.

 

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