LVMH revenues fall amid slowdown in luxury demand

LVMH has reported a 2% decrease in revenue to €20.7 billion for the first quarter of 2024, amid a slowdown in luxury demand. Organic group revenue increased by just 2%.

The company said it had a "good start" to the year despite a geopolitical and economic environment that remains uncertain.

However, its fashion and leather goods business saw revenues drop 2% to €10.4 billion on a reported basis. Organic sales increased 2% but remained lower than the percentage growth in the previous quarter.

The watches and jewellery business shared reported revenue declines of 5% to €2.4 billion, with organic sales also down at 2%.

The perfumes and cosmetics business remained more buoyant, however, with reported revenue up 5% and organic revenue up 7% to €2.1 billion. This was attributed to the group's "innovative momentum and selective distribution strategy".

The selective retailing business also reported revenue up 5% on a reported basis and 11% organically to €4.1 billion, with Sephora once again achieving "remarkable growth".

Looking ahead, in an uncertain economic and geopolitical environment, LVMH said it remains "vigilant" and "confident" at the start of the year.

The company added that it 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".