As Global Inflation Slowly Decreases, One Luxury Goods Company Sees Major Growth
There is a luxury goods company that is growing rapidly despite a struggling global economy.
LVMH is a luxury goods manufacturer with net profits of €15.2 billion for 2023. They are currently the largest luxury goods dealer in the world, and last year they reported a 9% growth rate, raking in an impressive €86.2 billion in sales.
The global luxury goods market has slowed down overall, but not for LVMH. Approximately 50% of their growth came from fashion brands, demonstrating a high demand for luxury products. The company has consistently done well despite the fluctuations of the markets around them, averaging about 9% growth each year for the past 10 years.
Market Instability
The global markets have been highly unstable for several years now, but we are just starting to see positive signs of growth across the world as inflation drops. The US is experiencing surprising growth, with a GDP of 3.1% reported for Q4 of 2023.
European markets, on the other hand, are facing serious headwinds from increasing energy prices and a workforce that is aging into its government subsistence. Across the eurozone, annual GDPs are averaging about 0.1% growth from year to year.
The good news is that rate hikes have been stopped so far for the year, with both European and American banks stating that they would not be issuing interest rate cuts for now. None of this has slowed down LVMH’s hold on the luxury goods market, though, and the company has managed to leverage global markets even during times of recession to keep sales high and continue its strong growth.
Since January 17th, LVMH stocks have spiked, growing from €647 to €779, an increase of 20.4%. If you were to look in their direction, you would not think that global recession and rising inflation were common fears.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals