By Joshua Kirby and Cristina Roca 
 

Shares in LVMH Moet Hennessy Louis Vuitton SE jumped in early trading Friday after the luxury-goods giant said revenue growth continued to accelerate at the end of 2021, leading to a much higher annual profit.

At 0813 GMT, shares traded 3.4% higher at EUR717.60, having risen as high as EUR733.90 early in the session.

The French conglomerate said Thursday evening that total yearly sales came to 64.22 billion euros ($72.19 billion)--rising 14% organically from EUR53.67 billion in 2019, before the Covid-19 crisis--confirming the company's pandemic recovery.

Analysts had expected total sales of EUR62.51 billion, according to a FactSet-compiled consensus.

In the fourth quarter, revenue was 22% higher than in the same period of 2019, accelerating from an 11% increase the previous quarter. The core fashion-and-leather division again drove growth, booking more than 50% higher revenue over two years, LVMH said.

LVMH's results suggest that the group has room for further recovery, with the selective retail and perfumes-and-cosmetics divisions still lagging behind 2019's results, Bernstein analyst Luca Solca said in a note.

Net profit for the year stood at EUR12.04 billion, almost tripling on year, thanks in part to an operating margin that climbed to 26.7% of revenue.

LVMH said it is confident of maintaining the pace of growth in 2022.

 

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby and Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

January 28, 2022 03:50 ET (08:50 GMT)

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