Louis Vuitton: The 10 million that separates it from normality in Greece

Of Giorgos Lampiris

An amount of 10 million euros in sales of goods in the Greek market is what separates Louis Vuitton Hellas from normality, i.e. from the last year of normal operation of the stores – in 2019 – and before the pandemic came into our lives.

Louis Vuitton in Greece expects 2022 to be the year of a return to normalcy and pre-pandemic financial figures, as in 2021 its turnover may fall short by 10 million euros compared to 2019, however the company appears convinced that despite the prevailing conditions, it will be able to significantly increase its turnover this year.

In any case, the previous year did not cease to be a year of significant sales recovery, where compared to 2020 they were up by 92%. Profits before taxes were in the order of 8.76 million euros.

Thus, despite the fact that the management of Louis Vuitton expresses its concern about the international upheavals related to the current economic environment and the developments in Ukraine, it does not cease to remain optimistic about the positive impact on the market from the lifting of travel restrictions and the increased tourist flow, which he estimates can bring the company back to 2019 pace.

In any case, what the popular brand has shown is that despite the wider uncertainty in recent years, it has managed to remain profitable. In 2019 the net profit after taxes was 9.15 million euros, in 2020 it was 2.03 million euros and in 2021 it reached 6.84 million euros.

Three stores in Greece, two seasonal

In our country, the company, in addition to its main store on Voukourestiou Street, also maintains one more seasonal point of sale in Mykonos at Tria Pigadia in the country of the island, as well as one more store in Nammos Village.

Characteristic of the strategy applied by the company in Greece, is the fact that the cost of advertising is almost negligible, as the costs for advertising in both 2020 and 2021 were at the level of 3,500 euros. This fact demonstrates its dynamism to the extent that it does not spend on advertising to support its brand.

The LVMH giant that continues to increase its sizes worldwide

Indicative of the path presented by the global luxury goods giant, LVMH group, is the fact that in the field of fashion products, organic revenues were increased by 30% in the first quarter of 2022, compared to the corresponding period of 2021.

We remind you that in addition to Louis Vuitton, the group manages brands such as Christian Dior, Fendi, Loro Piana, Celine, Marc Jacobs, Kenzo and others. Its portfolio includes beauty products with houses such as Guerlain, as well as jewelry and high watch houses such as Tiffany & Co, Bulgari, Tag Heuer, Hublot, Zenith, Chaumet and spirits such as Moët et Chandon and Armand de Brignac champagnes but also retail chains such as Sephora.

We point out that the turnover of the French group for 2021 was 64.21 billion euros, increased by 44% from 2020 where due to the pandemic it had decreased to 44.65 billion euros.

Of this 2021 figure, wines and spirits brought in 5.97 billion, fashion and leather goods 30.92 billion, perfumes and cosmetics 6.6 billion, watches and jewelry 8.9 billion and the network of selected retail stores added 11.75 billion euros.

Indeed, the turnover of 2021 led the LVMH group to a performance enhanced by 20% from that of 2019.