Hermes china
It was a different story in Asia (excluding Japan) where an underwhelming uplift of 20 percent was the result of a mix of factors that were not in the mix last year. Both markets over-performed the average with 44 percent growth. The group’s first-quarter consolidated revenue reached $2.9 billion (19.5 billion RMB), up 27 percent at comparable exchange rates - with the most dynamic sales coming from the group’s own stores, especially in America and Europe (excluding France). In the past month the stock is down 12 percent and year-to-date it has fallen 23.6 percent. LVMH’s overall improved financial performance sent its share price upwards after the results were revealed on April 12. And travel retailer DFS is still counting the cost of missing Chinese consumers in its stores in Hong Kong and elsewhere in Asia, as well as in La Samaritaine in Paris. Sephora too, while rebounding, was hit by reduced store traffic on the mainland. The flagship Hennessy cognac brand, a favorite in China, was down 18 percent on its global sales volumes: squeezed by supply and logistics constraints on the one hand (especially in the US) and multiple Chinese factors which, apart from COVID’s resurgence, included the unfavorable timing of Chinese New Year. The end result was that Asia’s share of LVMH’s sales dropped from 41 to 37 percent in the period. Asia was the only region not to see double-digit gains in Q1: the US grew 26 percent Japan 30 percent and Europe 45 percent. The year-on-year growth in the same quarter last year was 86 percent. This was manifested in LVMH’s Asia (excluding Japan) segment, where sales only managed an anemic performance: a single-digit rise of 8 percent. But revenue would have been even higher if not for the negative impact in March of new COVID-19 restrictions in China. Global sales in the quarter ending March hit $19 billion (127 billion RMB), up 23 percent (comparable growth) for the French luxury conglomerate. But fears over China’s Covid resurgence, as well as factors like Russia’s war against Ukraine and rising inflation, are spooking investors. Now, the reopened markets of the US and Europe are seeing plenty of revenge spending - and making the most of it. The tables have turned from when China was leading luxury growth for high-end houses last year.