Perspectives
Global Powers of Luxury Goods 2023
Game changing steps in luxury
Luxury goods company sales soar, profitability higher than pre-pandemic levels. During FY2022 the Top 100 luxury goods companies generated composite sales of US$347 billion, up from the US$305 billion registered in FY2021. This sharp increase in luxury goods sales signals the good state of the luxury industry after the pandemic years. The importance of the biggest luxury goods companies is clear: the 17 companies with luxury goods sales of more than US$5 billion contributed nearly 70% of the total Top 100 luxury goods sales. The 43 companies with sales of US$1 billion or less contributed only 6.4%. The minimum revenue threshold to enter the Top 100 was US$284 million.
The composite performance of the Top 100 companies in FY2022 reflects the continuing recovery from the impact of the COVID-19 pandemic, with stores open most of the year in most countries, travel and tourism returning, and consumer demand recovering especially in sectors such as makeup (see the separate box on the Impact of COVID-19 pandemic and company financial year end dates on FY2022 Top 100 ranking). For the 80 Top 100 companies reporting net profits in FY2022, the composite net profit margin was 1.2 percentage points higher than last year, at 13.4%, and higher than pre-pandemic levels.
In addition to exploring the trends reshaping the luxury goods market, this report delves into the 100 largest luxury goods companies, assessing their performance across geographies and product sectors. This year's report spotlights the industry's embrace of AI and the circular economy as game-changing forces. The luxury sector's ongoing transformation promises to redefine the industry, enhance customer experiences, and promote sustainability. As technology and luxury converge, the possibilities seem limitless.
Global Powers of Luxury Goods Top 100, FY2022