Louis Vuitton Posts Sales Growth for the First Time in Two Years, Helped by Stronger South Korean Stocks Amid the AI Boom

[Financial News]  

Sales at Louis Vuitton Moët Hennessy (LVMH), the world's largest luxury conglomerate, have turned upward for the first time in two years. The rebound in demand for Dior, led by new creative director Jonathan Anderson, and growth in the U.S. market helped drive the increase.
In particular, LVMH's chief financial officer said the rally in U.S. and South Korean stock markets, fueled by the artificial intelligence (AI) boom, helped support the recovery in luxury sales.
According to the Financial Times, LVMH said in its quarterly earnings release on the 27th (local time) that sales in its fashion and leather goods division rose 1% from a year earlier to 8.9 billion euros, or about 14.83 trillion won, in the second quarter.
Although the figure slightly missed analysts' expectations, it marked the end of seven consecutive quarters of declining sales.
Total group sales, including fashion and leather goods, rose 3% year on year to 19.5 billion euros, beating market forecasts. Net profit, meanwhile, fell 4% in the first half to 8.7 billion euros, but the operating margin remained solid at 22.5%.
The luxury market has struggled amid rising geopolitical volatility and sharp price increases by major brands.
Cécile Cabanis, LVMH's chief financial officer, said Dior's sales showed a "slightly stronger increase" than other brands.
Anderson, Dior's new chief designer, delivered results under intense pressure to quickly roll out new designs that could capture consumer attention amid challenges from strong rival Chanel. Cabanis said sales of Dior handbags and ready-to-wear clothing increased as Anderson's new collections reached stores.
Cabanis also said the impact of the new designer, along with the rally in U.S. and South Korean stock markets driven by the AI boom, played a major role.
He said, "When wealth is created, the appetite for luxury also grows," adding that the strength in U.S. and South Korean stock markets, powered by the AI boom, led to higher luxury sales.

[email protected] Song Kyung-jae[email protected] Song Kyung-jae Reporter