LVMH Q2 Sales Climb 19%, Offsetting Slower China

A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
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LVMH Q2 Sales Climb 19%, Offsetting Slower China

A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)

Sales at LVMH, the world's largest luxury group, rose by 19% in the three months to June, as robust growth in the US and China helped it offset a new round of lockdowns in China.

LVMH, which owns dozens of high-end labels such as Tiffany, said sales came to 18.73 billion euros ($18.95 billion) in the second quarter, beating analyst expectations for 17.13 billion euros in a Visible Alpha consensus cited by UBS.

The growth pace in the second quarter was a tad slower than in the first three months of 2022, when group sales had climbed by 23%.

Demand for fashion and leather goods from its star labels Louis Vuitton and Dior eased up slightly from high levels at the start of the year, rising by 19% in the quarter, as flows of travelling shoppers returning to Europe helped to mitigate disruptions to business in China.

LVMH has been tapping into strong, post-pandemic demand for its designer labels as socializing resumes and shoppers continue to spend savings from lockdowns, brushing off concerns about turbulent stock markets and rising prices.

The company's strong second quarter is setting the tone for rivals, with Gucci-owner Kering reporting its own first half results on July 27 and Hermes on July 29.



Shein Hit with Complaint from EU Consumer Group over 'Dark Patterns'

(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)
(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)
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Shein Hit with Complaint from EU Consumer Group over 'Dark Patterns'

(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)
(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)

Pan-European consumers organization BEUC filed a complaint with the European Commission on Thursday against online fast-fashion retailer Shein over its use of "dark patterns", tactics designed to make people buy more on its app and website.

Pop-ups urging customers not to leave the app or risk losing promotions, countdown timers that create time pressure to complete a purchase, and the infinite scroll on its app are among the methods Shein uses that could be considered "aggressive commercial practices", BEUC said in a report also published on Thursday.

The BEUC also detailed Shein's use of frequent notifications, with one phone receiving 12 notifications from the app in a single day, Reuters reported.

"For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption," Agustin Reyna, director general of BEUC, said in an interview.

"For us, to be satisfactory they need to get rid of these dark patterns, but the question is whether they will have enough incentive to do so, knowing the potential impact it can have on the volume of purchases."

In a statement, Shein said: "We are already working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations." It added that the BEUC had not accepted its request for a meeting.

Shein and rival online discount platform Temu have surged in popularity in Europe, partly helped by apps that encourage shoppers to engage with games and stand to win discounts and free products.

The BEUC has also previously targeted Temu in a complaint.

Shein's use of gamification, drawing shoppers to use the app regularly, has helped drive its success.

In the "Puppy Keep" game on the app, users feed a virtual dog and collect points to win free items. They can gain more points by scrolling through the app, and by ordering items, but must log into the game every day or risk losing cumulative rewards.

The BEUC noted that dark patterns are widely used by mass-market clothing retailers and called on the consumer protection network to include other retailers in its investigation.

It said 25 of its member organizations in 21 countries, including France, Germany and Spain, joined in the grievance filed with the Commission and with the European consumer protection network.

Late last month, the European Commission notified Shein of practices breaching EU consumer law and warned it would face fines if it failed to address the concerns.

The company is also under scrutiny from EU tech regulators on how it complies with EU online content rules.