Companies

Slow start to 2024 for LVMH

Apr 17, 2024 France

Amid a slowdown in demand for luxury and a challenging geopolitical and economic environment, the French-based luxury group has reported a 3% rise in revenue in the first quarter of 2024

“LVMH had a good start to the year despite a geopolitical and economic environment that remains uncertain”, said the group, which reported a first quarter organic revenue growth of 3% to 20.7 billion euros, as compared to the same period of the previous year.

This contrasts with organic growth of 17% in the first quarter of 2023, when sales were boosted by the lifting of COVID-19 restrictions in Mainland China, and comes amid concerns of a prolonged global slowdown in luxury.

On a comparable basis to the first quarter of 2023, the luxury group performed well in Japan, where organic revenue grew by 23%, while revenue declined by 6% in the rest of Asia, with Chinese consumers spending in Europe and the US. In these regions, LVMH’s organic revenue increased by 2% over a similar period of the prior year.

In the first quarter of this year, the Fashion & Leather Goods business group achieved organic revenue growth of 2%, on a comparable basis to last year’s first quarter, which amounted to 10.49 billion euros. During this period, Louis Vuitton’s growth was “slightly above” the division’s average, driven by “the creativity and quality of its product”, while Dior’s was “slightly below”.

This performance reflects soft demand for luxury goods, as sales in this division have been slowing after an extended period of growth: revenue grew by 20% year-on-year in 2022 and by 14% year-on-year in 2023; last quarter, sales increased by 9% year-on-year.

Image Credits: rain-mag.com

France Fashion Luxury LVMH Quarter Results Results