LVMH

LVMH Reports Stronger-than-Expected Full-Year Sales Signaling Recovery in Luxury Sector

Prime Highlights: 

LVMH reported revenues of 84.68 billion euros ($88.27 billion) for 2024, surpassing analyst expectations of 84.38 billion euros. 

The company achieved a modest 1% organic growth compared to the previous year. 

Sales rose more than expected in Q4, driven by strong demand in Europe, the U.S., and Japan, despite weaker sales in Asia. 

Key Background: 

LVMH, the world’s largest luxury goods company, posted better-than-expected full-year sales for 2024, providing a promising indication of recovery within the high-end market. The French conglomerate, which owns prestigious brands such as Louis Vuitton, Moët & Chandon, and Hennessy, reported total revenues of 84.68 billion euros ($88.27 billion), surpassing the 84.38 billion euros forecast by analysts. This represents a modest 1% organic growth compared to the previous year. 

Notably, LVMH saw a stronger-than-expected performance in the fourth quarter, after experiencing a decline in the previous quarter. The growth was primarily driven by strong consumer demand in Europe, the U.S., and Japan, although sales in the wider Asia region remained weak. Bernard Arnault, Chairman and CEO of LVMH, emphasized the group’s resilience in navigating an uncertain economic environment, citing it as a testament to the effectiveness of LVMH’s strategy. 

The company’s selective retailing division, which includes Sephora, as well as its perfume and cosmetics sector, led the positive results. However, its fashion and leather goods, as well as wine and spirits segments, still faced challenges. Arnault also acknowledged a substantial decline in cognac and spirits sales but expressed confidence in a recovery within two years as new leadership takes charge of this division. 

Despite the ongoing geopolitical and macroeconomic uncertainties, LVMH’s outlook for 2025 remains positive, with the group entering the year with strong momentum. The company’s performance is seen as a key indicator of broader luxury trends, especially as other major players like Richemont and Burberry also reported promising results in recent weeks. LVMH shares are up approximately 18% year-to-date, recovering from a 13% decline in 2024. Earlier this month, the company reclaimed the title of Europe’s most valuable company, surpassing Danish pharmaceutical giant Novo Nordisk.