Dive Brief:
- LVMH Moët Hennessy Louis Vuitton reported revenue of 60.8 billion euros, or about $66.1 billion, for the first nine months of 2024, representing a 2% decline for the period, according to a Tuesday release.
- Third quarter revenue fell 4.4% year over year to 19 billion euros. Fashion and leather goods, which represent the company’s largest division, saw revenue fall 6.1% for the period, while watches and jewelry fell 5.4%.
- Growth slowed across all regions, with the largest drop coming from Asia, excluding Japan, which saw a 16% decline in Q3 organic revenue year-over year. In its report, the company attributed the lag to “strong growth in spending by Chinese customers in Europe and Japan.”
Dive Insight:
LVMH stock fell following the reported results, which reflected larger, persistent struggles in the luxury sector.
In its earnings report, LVMH noted that revenue for the first nine months of 2024 was stable despite “a high basis of comparison, following several years of exceptional post-Covid growth.”
By region, third quarter growth slowed in Japan, which the company attributed to a stronger yen. Meanwhile, third quarter organic revenue in the U.S remained flat year over year, and grew 2% in Europe for the period.
Despite the decline in the company’s fashion division, the company noted that it was “broadly stable on an organic basis over the first nine months of 2024,” and added that the division “showed good resilience and gained market share.”
In particular, LVMH touted the high visibility for both its Louis Vuitton and Christian Dior brands at the Paris 2024 Olympic and Paralympic Games, and said its Loro Piana, Loewe and Rimowa brands maintained solid momentum. In addition, the company noted the recent appointments of Michael Rider as creative director at Celine and Sarah Burton as creative director at Givenchy.
The company said the results showed “good resilience in the current context” and was optimistic about its forward outlook despite the declines.
“In an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in distribution and agile organization,” the company said.
