LVMH, the luxury brand owner, said Q3 sales rose to €19bn as consumers splurge on prestige beauty despite the looming cost of living crisis.
The owner of Guerlain and Dior Parfums reported that its Perfume & Cosmetics division reported a sales increase of 12% throughout 2022 and 10% in Q3.
Christian Dior was a standout beauty brand for LVMH and "remains a star" in Europe and the US, said Christopher Hollis, LVMH's Director of Financial Communications.
Dior's Addict make-up line and its Prestige skin care collection contributed to the brand's "rapid growth", reported LVMH.
Guerlain sales continued to grow with perfume lines Aqua Allegoria and l’Art et la Matière, along with the Abeille Royale skin care, as standout ranges.
LVMH's Selective Retailing division, which includes Sephora and DFS travel retailer, has grown by 20% in 2022.
Q3 sales, meanwhile, saw the lowest growth in the division at 15% compared to 20% and 24% in Q2 and Q1 respectively.
Sephora reported an "excellent performance", particularly in North America, France and the Middle East.
DFS remained to be impacted by the persistent lack of travel and ongoing health restrictions in Asia.
Digital sales are slowing as physical retail reopens and the business is "shifting back to bricks-and-mortar", said Jean Jacques Guiony, LVMH’s Chief Financial Officer, on a call to analysts.
Outside mainland China, physical retail is growing faster than digital across LVMH's entire business, he continued.
But digital sales are still growing by "double digits" and contribute to 13% of total sales.
However, he stressed that China is "not back to normal" and the business is "not operating in normal conditions" due to supply chain disruptions, reduced footfall compared to pre-pandemic levels and Covid-19 lockdowns.
Sales in Europe, the US and Japan, were up sharply, driven by solid demand of local customers and the recovery in international travel.
