LVMH sales decline amid slowdown in luxury sector
LVMH has delivered revenue of £50.8 billion (€60.8 billion) for the first nine months of 2024, down 2% on a reported basis, as the geopolitical and economic environment remains uncertain.
The fashion and leather goods business decreased 3% but showed “good resilience”, with Louis Vuitton and Christian Dior enjoying high visibility over the summer with the Paris 2024 Olympic and Paralympic Games.
Meanwhile, Loro Piana, Loewe and Rimowa continued their solid momentum during the first nine months of 2024.
The watches and jewellery business reported a 5% decline, despite new campaigns from Tiffany & Co and Bulgari so far this year.
However, the perfumes and cosmetics business group achieved reported revenue growth of 2%, driven by its powerful innovation strategy and highly selective distribution policy.
Christian Dior achieved an “excellent” performance across fragrance, while makeup and premium skincare also contributed to the luxury brand’s strong performance.
Givenchy and Guerlain also enjoyed solid momentum in fragrance, plus Fenty Beauty benefitted from its new haircare line and expanded retail presence in China.
In selective retailing, revenue growth was 1% in the first nine months of 2024. As part of this, Sephora performed “remarkably well” and continued to gain market share in North America, Europe and the Middle East.
Looking ahead, in an uncertain economic and geopolitical environment, LVMH said it remains “confident” and will continue to pursue its strategy focused on the development of its brands, driven by a “sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution”.
The trading update comes after LVMH recently sold Off-White to brand management company Bluestar Alliance LLC. The terms of the transaction were not disclosed.
