LVMH weathers the storm beating forecast during 'turbulent times'
LVMH, which boasts a portfolio of luxury brands including Louis Vuitton and Givenchy, has reported revenue of £71 billion (€84.7 billion) in 2024, beating its previous expectations of £70.7 billion (€84.28 billion).
Despite a "challenging economic and geopolitical environment", LVMH reported continued growth (up by 1% on an organic basis) thanks to demand in Europe and the US as well as its leather goods category.
During 2024, profit equalled £16.4 billion (€19.6 billion), equating to an operating margin of 23.1%, "significantly exceeding pre-Covid levels". However, exchange rate fluctuations had a substantial negative impact during the year, particularly on Fashion & Leather Goods and Wines & Spirits. The group's net profit totalled £10.5 billion (€12.6 billion).
Category Breakdown
The Fashion & Leather Goods category, which includes Rimowa, Loewe, Louis Vuitton and Christian Dior, showed "good resilience" and was broadly stable in terms of organic growth in 2024. Profit from recurring operations was down by 10%, mainly affected by exchange rate fluctuations. The group also welcomed two new creative directors: Michael Rider at Celine and Sarah Burton at Givenchy.
The Watches & Jewellery division, including TAG Heuer and Tiffany & Co., dipped by 2%. Profit from recurring operations was down 28%. The company put this down to "ongoing investments in store renovations and communications, as well as exchange rate fluctuations".
Perfumes & Cosmetics saw a "solid momentum" thanks to fragrance sales and its selective distribution strategy. The division achieved revenue growth of 4% in 2024, while profit from recurring operations was down 6%.
As for Sephora, it once again delivered a "remarkable performance" with double-digit growth in both revenue and profit.
Bernard Arnault, Chairman and CEO of LVMH, said: "In 2024, amid an uncertain environment, LVMH showed strong resilience. This capacity to weather the storm in highly turbulent times – already illustrated on many occasions throughout our Group’s history – is yet another testament to the strength and relevance of our strategy.
"The creativity and very high quality of our products, our steadfast commitment to excellence, the agility of our teams and the good geographic balance of our locations underpin the success of LVMH and its Maisons, backed by the dedication of all our people.
"While remaining highly vigilant with regard to cost management and our single-minded focus on the desirability of our designs, we enter 2025 with confidence. Guided by our mission – ‘Passionate about creativity’ – and our core values, the Group will rely on the agility and talent of its teams to set the stage for future success and further extend its leadership in the luxury market."
Looking ahead, LVMH said in a statement it "remains confident and will pursue its brand development-focused strategy". It added that the group is on a "quest for desirability and quality in its products and their highly selective distribution".