LVMH is unstoppable

The LVMH group has always been a formidable force in the luxury field - but today more than ever it seems unstoppable. If in recent weeks Bernard Arnault had become the richest man in the world, undermining the Silicon Valley and high-finance tycoons, today his group said it posted revenues up 17 percent in the first quarter of 2023 and is also preparing to acquire the Platinum Invest group, which specializes in high jewelry, to go on a conquest of the world of gold and diamonds. Although the LVMH group itself said that the geopolitical scenario in which it is moving remains uncertain, revenues in the past three months have just over 21 billion euros with growth (led by China and Japan, with the U.S. market proportionally less) in all of its areas except spirits, which include the most famous champagne and Hennessy brands, and cosmetics, which, in China, sell well but could do better.

If Louis Vuitton and Dior are the locomotives of this growth, the group's other superstars are Celine, Loewe, and Loro Piana while Rimowa and Berluti gained great traction. In terms of growth, the Japanese market expanded by 34 percent in the quarter; the European market by 24 percent; the rest of Asia by 14 percent; and the U.S. market by 8 percent. Thanks to Sephora, make-up is performing better than perfume, just as watch manufacturing is being outperformed by jewelry. It is precisely the jewelry sphere that seems to appeal to Arnault, who has begun to verticalize its production with the acquisition of Platinum Invest, a manufacturing group that includes five factories in France, 800 artisans and already produces for Bulgari and Cartier but will now boost all the brands in LMVH's portfolio, including Tiffany & Co. whose U.S. operations will still remain intact. The acquisition not only responds to expansion ambitions but to an actual exponential increase in demand, which LVMH officials have in some cases called record-breaking.