French luxury goods giant LVMH’s performance is on a “very good track” for the first six months of the year, the company’s Chairman and CEO Bernard Arnault said on Thursday.
“I am optimistic, you will see the numbers,” Arnault said to reporters during an event in Paris.
Arnault noted that the global economy is at a turning point and he remains confident in the ability of central banks in the U.S. and Europe to slow down inflation without triggering a recession.
Over the past several months, players in the luxury industry have benefitted from an increase in demand for high-end products from consumers wanting to resume their social lives. However, recent lockdowns in China have prompted concerns that European luxury houses might experience a negative impact on their sales.
LVMH, for one, has been working to strengthen and diversify its portfolio — a strategy that could potentially help the company weather the impact of store closures in China.
In May, LVMH hired L’Oréal USA executive Stéphane Rinderknech as the new CEO and chairman of LVMH Hospitality Excellence in an effort to better cash in on the resurgence of the travel industry in the Summer of 2022.
More recently, LVMH led a $90 million investment round for lab-grown diamonds (LGD) producer LUSIX.