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Diving overview:
LVMH Moët Hennessy Louis Vuitton reported sales of 60.8 billion euros (about $66.1 billion) for the first nine months of 2024, a 2% decline for the same period, according to a statement on Tuesday. Sales in the third quarter were 19 billion euros, down 4.4% year-on-year. Sales in fashion and leather goods, the company’s largest division, fell 6.1% in the same period, while watches and jewelry fell 5.4%. Growth slowed in all regions, with Asia ex-Japan seeing the biggest decline, where organic revenue fell 16% year-on-year in the third quarter. In a report, the company blamed the delay on “significant growth in spending by Chinese customers in Europe and Japan.”
Dive Insight:
LVMH shares fell following the earnings report, which reflected broader and sustained struggles in the luxury goods sector.
LVMH noted in its earnings report that revenue was stable in the first nine months of 2024 despite “high comparative standards after several years of extraordinary post-COVID-19 growth.” did.
By region, growth slowed in the third quarter in Japan, but the company attributed this to the strong yen. Meanwhile, U.S. organic revenue was flat year-over-year in the third quarter, while Europe grew 2% over the same period.
Despite the weaker performance of the company’s fashion division, the company noted that it was “generally stable on an organic basis during the first nine months of 2024,” noting that the division “demonstrated excellent resilience and We have gained market share,” he added.
In particular, LVMH touted the high visibility of its Louis Vuitton and Christian Dior brands at the Paris 2024 Olympic and Paralympic Games, while its Loro Piana, Loewe and Rimowa brands maintained solid momentum. He said he is doing so. The company also noted the recent appointment of Michael Ryder as creative director of Celine and Sarah Burton as creative director of Givenchy.
The company said the results showed “good resilience in the current circumstances” and it was optimistic about future prospects despite the decline.
“In an uncertain economic and geopolitical environment, the Group remains confident and leverages the reliability and quality of its products, outstanding distribution and agile organization to continue to maintain the goodwill of its brands. “We will continue to maintain a strategy focused on increasing our sales,” the company said.
