The world’s Top 5 luxury goods companies generated revenues of US$122 billion in FY2021.
The Top 5 companies saw their luxury goods sales rebound in FY2021, as operations recovered from the adverse impact of the COVID-19 pandemic on consumer demand, retail, and supply chains. Many of them reported sales above their pre-pandemic levels, driven partly by increasing e-commerce sales and the re-opening of physical stores.
This article is a preview of the Top 5 companies which will be listed in the upcoming Global Powers of Luxury Goods 2022. The full report, which will be published in late 2022, will include a full analysis of the Top 100 companies, as well as luxury trends and special focus sections.
Source: Deloitte Touche Tohmatsu Limited. Global Powers of Luxury Goods 2022. Analysis of financial performance and operations for financial years ended through 31 December 2021 using company annual reports, industry estimates and other sources.
1 Richemont’s FY2021 financial year ended in March 2021, so saw a greater negative impact of the COVID-19 pandemic on their FY2021 results compared with other Top 5 companies which had later year end dates. Luxury goods sales growth for the year ended March 2022 for Richemont was 50.1%.
The composite luxury goods sales of the Top 5 companies grew by 91% over the five years FY2016-FY2021. The luxury goods sales of the top two companies in FY2021 was more than the total luxury goods sales of the Top 5 in FY2016. Both LVMH and Kering have seen their luxury goods sales more than double. Luxury goods leader LVMH increased its share of the Top 5 from 39.1% in FY2016 to 44.9% in FY2021. Beauty companies Estée Lauder and L’Oréal Luxe have seen slower growth in the sales of their owned and licensed luxury goods brands than multiple luxury goods companies LVMH, Kering and Chanel.
The companies making up the Top 5 have been relatively stable, with only L’Oréal Luxe entering the Top 5, replacing Richemont*
Chart 1: Luxury goods sales US$ million: FY2016 & FY2021
All of the Top 5 companies saw their luxury goods sales rebound in FY2021, as the impact of the COVID-19 pandemic on consumer demand, retail and supply chain constraints reduced. Many reported sales above pre-pandemic levels, driven mainly by store re-openings, strong ecommerce growth and normalizing consumer demand for their luxury brands.
Chart 2: Luxury goods sales YoY growth FY2019-FY2021
This article is a preview of the Top 5 companies listed in the upcoming Global Powers of Luxury Goods 2022, which will be published in late 2022. In addition to exploring the trends impacting the luxury goods market, the report will identify the hundred largest personal luxury goods companies (owned or licensed luxury brands). Their performance across geographies and product sectors is based on publicly available data for FY2021 (which we define as financial years ending within the 12 months from 1 January to 31 December 2021). A new section in this year's report will focus on circularity strategies and the secondary/resell market, which has become increasingly important in the luxury sector. As in last year’s report, there will be a section on the impact of COVID-19 on financial results.