[PARIS] LVMH's revenue growth surpassed estimates as the world's largest seller of luxury goods defied disruptions from the war in Ukraine and the resurgence of Covid-19 in China.

First-quarter sales advanced 23 per cent on an organic basis to 18 billion euros (S$26.6 billion), led by LVMH's biggest unit, fashion and leather goods, the Paris-based company said in a statement Tuesday (Apr 12). Analysts had expected a gain of 17 per cent.

Led by billionaire founder Bernard Arnault, LVMH is the first European luxury-goods maker to publish revenue for the period, kicking off the reporting season on a positive note. The company said that it remains "vigilant and confident", in the context of the current geopolitical and global health situation. The US and Europe both recorded double-digit sales increases in the quarter.

LVMH closed its stores in Russia on Mar 6 following the invasion of Ukraine, a conflict that could dent consumers' "feel-good factor" when it comes to luxury purchases, according to Telsey Advisory Group. The global shift in mood brought on by the war will probably affect high-end consumption more than a drop in spending from Russian nationals, who are estimated to account for less than 1.5 per cent of LVMH's sales, according to Morgan Stanley.

The company has also faced lockdowns in Shanghai as the coronavirus spread in parts of China, leading to worsening prospects for the economy and potentially for luxury sales.

Still, revenue at LVMH's fashion and leather goods unit, which houses Louis Vuitton and Dior, soared 30 per cent, beating analysts' forecast for a gain of 23 per cent.

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The luxury industry has been relying on price increases to offset inflation pressures. Louis Vuitton raised prices by around 6 per cent in the first quarter, according to Stifel estimates.

Chief financial officer Jean-Jacques Guiony will speak to the press later Tuesday, and his remarks will by scrutinised, especially on recent demand trends in China. BLOOMBERG