The rich are living in a different economic world
Luxury giant LVMH’s recent results raise the question of how long “luxonomics” can last
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“LUXURY is not a proxy for the general economy,” Jean-Jacques Guiony, chief financial officer of LVMH Moet Hennessy Louis Vuitton, said on Tuesday (Oct 11).
He could not be more right. Browsing through the third-quarter trading update from LVMH, you would be forgiven for thinking the world wasn’t facing geopolitical turmoil, soaring inflation and sinking stock markets.
The bling behemoth reported a 19 per cent increase in sales, excluding mergers and acquisitions and currency movements, in the three months to Sep 30. Fashion and leather goods organic revenue rose 22 per cent. Both results trounced analysts’ expectations.
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