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The rich are living in a different economic world

Luxury giant LVMH’s recent results raise the question of how long “luxonomics” can last

Andrea Felsted
Published Wed, Oct 12, 2022 · 06:15 PM

“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.

Investors should still be cautious. The third quarter was always going to be a blockbuster, with travel restrictions easing and many Americans venturing back to Europe with a strong dollar to make the most of. And now LVMH has set a very high bar for the forthcoming reportin…

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