The year 2022 could not have started well for the French beauty. The most important things in the sector are putting the amazing results for the first half. From Hermès to Kering through L’Oréal… All are seeing their net worth improve thanks to the increase in sales compared to 2021, a year marked by the return of customers. Despite the current difficult environment, which is undermined by inflation, supply shortages and frequent lockdowns in China where sales are falling, the quality continues to show the peace and near the rest of the year with complete confidence.
Starting with the world number one, LVMH, where the year 2022 was announced, of course, under the best companies. The French company announced last Tuesday that it had a profit of 6.5 billion euros in the first half, an increase of 23% compared to the same period of 2021, whose activity was recorded as . ” account”. The sales of the Bernard Arnault group were 36.7 billion euros between January and June, up 28%, led by the Fashion and Leather Goods group (Louis Vuitton, Dior, Celine, and among others). ).
A success that LVMH owes to the increase in its sales in Europe and the United States. Indeed, the lifting of health restrictions in Europe has allowed the return to the country of foreign tourists, especially Americans. The weaker the euro, which stands in a balance with the dollar, the better this product is.
In the United States, it is the local population that explains this increase in sales. ” American consumers spend more, since immigrationwould besocial and social to be possible new customer segments access to rich food »analyzed Joëlle de Montgolfier, vice-president of the research and research department for the real estate sector in the cabinet Bain & Company. ” From now on, the commercials of the big real estate companies are promoting these new segments, namely the African-American population, who are slowly coming to this real estate market; they help create a customer base that didn’t exist before », he continued. In addition, the boom in online sales allows parts or parts of the American country, no place of sale, to find them.
Despite falling sales, China is doing well
The strength of the European and American markets allowed luxury goods, especially LVMH, to offset the weak sales growth in Asia, especially in China, which is still under health limits in the second quarter. Thanks to his “zero-Covid” plan. », the country has increased restrictions on the first warning of a new epidemic, even in economically important areas such as Beijing and Shanghai. Kering makes a similar observation. The company announced on Wednesday that it had a profit of 1.988 billion euros, which is 34% more than a year ago. Its sales between January and June 9.93 billion euros, more than 23% more than a year, thanks to its brand Gucci which is only 5.173 billion euros in sales (+ 15%) . It benefited from increased activity in Western Europe, Japan and the United States, where it ended ” the big impact of the Chinese lockdown » related to Covid-19, according to a release from the company.
Despite this drop in sales, the Chinese market is still good for luxury brands that continue to invest there, as explained by Kering’s chief financial officer, Jean-Marc Duplaix, in in an interview with journalists. For Gucci, that is ” It is an important market, which will be stable for a long time », he explained. Joëlle de Montgolfier agreed: ” Even if in the short term there are doubts, in the long term the Chinese market will remain the locomotive of the real estate market, because the population is growing with the development of the lifestyle and the great demand to commodity products. When the Chinese market reopens, with the lifting of health restrictions, consumers can buy in China, but also travel and spend outside their country. So the long-term indicators are better, without any new geopolitical events. ».
On the part of Hermès, there is a positive attitude towards Chinese consumers. The head of the French company also welcomed the good stability of the economic group in Asia despite the health situation in China. ” It fell in April, but had a strong rebound in June ». ” We are not far from paying for the fall (…) At the end of the first half, we are good in China »he assures Hermès with delight ” a free session ». The group saw a profit of 1.64 billion euros in the first half, increasing by 39.7% year on year, thanks to the increase in sales in all areas, as with the release published on Friday. The sales of the leather saddler manufacturer reached 5.475 billion euros, a 29% increase compared to the first half of 2021. The French giant plans to continue. ” the pace of spending (…) in the second half of the year to strengthen all the businesses of the house », says Axel Dumas, announcing that five new leather goods will see the light of day in five years.
L’Oréal, which has a profit of 3.2 billion euros, has increased by 36.4% due to a 20.9% increase in sales over a year, the company can rely on online sales , which accounts for 60% of its turnover in China, compared to 50% previously. Nicolas Hieronimus, the company’s chief executive said himself ” believe that China will have a good second half: they are readywould be better and worse covid, no inflation, low unemployment, economic policy ».
Luxury, impervious to the effects of inflation
Luxury seems to be ignoring the problems going on around the world, starting with the war in Ukraine. ” Damage was minimal and limited to Russia and Ukraine », says Joëlle de Montgolfier. And if the players have seen the increase in the price of resources due to the expansion and supply of problems, the nature of the great wealth will give them the ability to give This increases their sales in a similar way. ” Generally, those who have the ability to buy luxury are not susceptible to rising prices. »explain the expert who pointed that out ” Honor in history is the most resistant to adversity ». However, he was surprised: ” If inflation leads to a recession, especially in the United States, can the real estate sector be saved by a reduction in consumption? » Even in the United States, there are fewer emerging customers, especially young workers, who can afford this item of expense.
However, Bain & Company expects the company to maintain its strong momentum for the rest of the year. ” It is too early to make predictions, because there are still many uncertainties, but we believe that the market will grow during the year. The best estimate shows a growth of 5 to 10% compared to 2021 against 10 to 15% if the increase in sales in Europe and the United States is maintained and those in the United States increase again China. Either way, it should be a good year »concluded Joëlle de Montgolfier.