The fashion arm of LVMH posts record sales and profit for the first half of 2021
Even with the ongoing global crisis with COVID-19, luxury fashion is taking the lead in reviving the sector. As businesses recover from the pandemic and its economic effects, the luxury goods industry finally shows signs of brighter days ahead as Moët Hennessy Louis Vuitton (LVMH) indicates that its profits have soared in the first half of 2021.
According to a report from Reuters as published by Business of Fashion (BOF), the conglomerate has posted record sales and increased market share as well. “Shares in LVMH have surged by more than 70 percent since June last year, making the group the biggest European company by market value and allowing boss Bernard Arnault to briefly overtake Amazon founder Jeff Bezos as the richest man in the world,” BOF says in an article.
Why the surge? “The end of COVID-19 lockdowns across much of Europe is reviving demand in the region after a strong Chinese rebound,” BOF continues. “LVMH, the world’s biggest luxury goods group, has benefited more than most, using its heft to spend on marketing and social media campaigns when some of its smaller rivals are struggling to get back on their feet.”
Image from Fendi