LVMH in 2024: resilience in an uncertain context

LVMH, the world’s leading luxury goods group, reported a slight increase in sales in 2024 (+1%), but a significant fall in net income (-17%), marking a year of contrasts.

Sales driven by Perfumes and Cosmetics

Despite an uncertain economic environment, LVMH achieved sales of €84.7 billion in 2024, thanks to a solid performance in the fourth quarter. The Perfumes and Cosmetics segments in particular contributed to this growth (+4%), with sales of 8.4 billion euros, driven by iconic brands such as Christian Dior and Guerlain. Sephora, in the Selective Retailing division, achieved double-digit growth, contributing to an overall increase of +6% for this segment.

Marked declines in Fashion, Jewelry and Spirits

By contrast, other Group divisions suffered. Fashion and Leather Goods, which remains the main contributor to sales with 41 billion euros, recorded a -1% decline. The Watches and Jewelry segment also declined by -2%, while Wines and Spirits saw sales fall by -8%, affected by the normalization of post-Covid demand, particularly in China.

Operating income for these segments fell sharply, with declines of up to -36% for Wines & Spirits and -28% for Watches & Jewelry. Investments in store renovation and the impact of exchange rates also weighed on profitability.

LVMH’s outlook for 2025

CEO Bernard Arnault is optimistic for 2025, stressing the importance of innovation and the “desirability” of the Group’s creations. According to Barclays, LVMH could grow by +2% over the next 12 months, despite a still uncertain economic environment.

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