LVMH remains "confident" as annual profit and revenues rise
LVMH has reported a 13% increase in annual revenue to £73 billion (€86 billion), boasting a "remarkable performance" from its fashion and leather goods business.
All business groups achieved revenue growth in 2023, with the exception of wines and spirits, which was faced with a high basis of comparison.
The fashion and leather goods business saw revenue increase 14% to £35 billion (€42 billion), helped by an "excellent performance" from Louis Vuitton. Growth was also driven by Dior, Celine and Loewe, amongst other brands.
The watches and jewellery business recorded revenue growth of 7% to £9.2 billion (€10.9 billion), boosted by Tiffany & Co, TAG Heuer and Chaumet.
The perfumes and cosmetics business also saw revenue rise 11% to £6.9 billion (€8.2 billion), thanks to the group's "highly selective retail policy and dynamic innovation strategy".
As part of this, Christian Dior extended its lead in its key markets. Meanwhile, Givenchy, Benefit Cosmetics and Guerlain also boasted an uplift in sales.
The selective retailing business reported revenue up 25% to £15 million (€17.8 billion), with an "exceptional performance" from beauty giant Sephora.
Annual profit from recurring operations grew 8% to £19 billion (€22.8 billion), while group share of net profit also rose 8% to £12.9 billion (€15.2 billion).
Looking ahead, in an uncertain economic and geopolitical environment, LVMH said it remains "confident" in the continuation of its growth.
Bernard Arnault, Chairman and CEO of LVMH, said: "Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges.
"The group once again recorded significant growth in revenue and profits. Our growth strategy, based on the complementary nature of our businesses, as well as their geographic diversity, encourages innovation, high-quality design and retail excellence, and adds a cultural and historical dimension thanks to the heritage of our Maisons.
"While remaining vigilant in the current context, we enter 2024 with confidence, backed by our highly desirable brands and our agile teams."
The trading update comes after Sidney Toledano recently handed over the Chairman and CEO reins of the LVMH Fashion Group to former Louis Vuitton CEO Michael Burke, and stepped into a new role as strategic adviser to LVMH Chairman and CEO Bernard Arnault.
Following the decision by Charles de Croisset, Yves-Thibault de Silguy and Nicolas Bazire to not stand for re-election as directors, LVMH will also propose the appointments of Henri de Castries, Alexandre Arnault and Frédéric Arnault to its Board of Directors at its next AGM in April 2024.
