LVMH, a leading luxury goods conglomerate, reports a slight decline in revenue amidst a challenging economic environment.
- For the first half of 2024, LVMH recorded €41.7 billion in revenue, reflecting a 1% year-on-year decrease.
- Profit from recurring operations fell 8% to €10.6 billion, with net profit down 14% compared to the previous year.
- Despite overall declines, LVMH noted growth in specific regions such as the US and Japan, alongside increases in certain sectors.
- Leadership expressed optimism, highlighting strategic resilience and upcoming opportunities like the Paris 2024 Olympic Games.
LVMH, renowned for its portfolio of luxury brands, posted revenues of €41.7 billion for the first six months of 2024, marking a 1% decline compared to the identical period in 2023. This decrease aligns with a broader trend of slowing momentum within the luxury sector.
The conglomerate’s profit from recurring operations witnessed an 8% drop, settling at €10.6 billion, while the group share of net profit experienced a more significant fall of 14%, reaching €7.3 billion. Such declines are indicative of the complex economic landscape that companies in the luxury goods sector are navigating this year.
Regionally, LVMH reported growth in Europe and the United States when measured on a constant consolidation scope and currency basis. Japan, however, stood out with double-digit revenue growth, buoyed by strong spending from Chinese customers, particularly in European and Japanese markets. In contrast, the company acknowledged weaker demand within China, despite overall organic revenue growth rising slightly by 2% over 2023.
The varied performance across its sectors is noteworthy. While categories such as fashion and leather goods, perfumes and cosmetics, and selective retailing saw marginal increases of 1%, 6%, and 8%, respectively, other areas like watches and jewellery, and wine and spirits witnessed declines of 3% and 9%. Nevertheless, certain brands within these sectors, such as Louis Vuitton and Christian Dior, performed robustly, credited to successful strategies and high viewer engagement in fashion shows.
LVMH’s leadership, underscored by CEO Bernard Arnault, maintains a confident outlook for the remainder of 2024. Arnault attributed the group’s stability to the enduring appeal of its brands and the agility of its teams, even amid geopolitical and economic challenges. He emphasised the group’s commitment to both desirability and responsibility, with significant anticipation around its partnership with the Paris 2024 Olympic and Paralympic Games.
LVMH remains strategically positioned to navigate future challenges and seize upcoming opportunities, reinforcing its global leadership in luxury goods.
