PARIS: After a year of record sales and profits despite slowing global growth the luxury sector is looking to the reopening of China to deliver further expansion in 2023. The world's largest luxury group LVMH posted a 23 per cent jump in sales to a record of €79 billion (US$86 billion) in 2022 and saw pr
PARIS: After a year of record sales and profits despite slowing global growth the luxury sector is looking to the reopening of China to deliver further expansion in 2023.
The company's chief executive, Bernard Arnault, wants to continue along that path in 2023,"at the risk of becoming boring".Sales at Hermes jumped 29 per cent to €11.6 billion and profits soared 38 per cent to a record €3.4 billion. The gradual reopening of China - which abandoned the last of the travel restrictions of its zero-COVID policy on Jan 8 - should help its economy expand by 5.2 per cent in 2023, according to the International Monetary Fund's latest forecast.
Analysts at UBS say 2023 will be the"year of the Chinese consumer", noting that the pandemic restrictions pushed down the share of Chinese consumers in global luxury spending to 17 per cent last year, compared with 33 per cent before the pandemic."The Chinese clientele is much more important than it was in 2019," LVMH's financial director Jean-Jacques Guiony told journalists.
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Luxury sector eyes reopening of ChinaPARIS: After a year of record sales and profits despite slowing global growth the luxury sector is looking to the reopening of China to deliver further expansion in 2023. The world's largest luxury group LVMH posted a 23 per cent jump in sales to a record of 79 billion euros (US$86 billion) in 2022 and saw
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