LVMH Reports €84.7B in 2024 Sales Amid “Unfavorable” Market Conditions

Image: Louis Vuitton

LVMH Reports €84.7B in 2024 Sales Amid “Unfavorable” Market Conditions

LVMH says that it achieved a “solid performance” in 2024 “despite an unfavorable global economic environment.” The luxury goods group reported revenues of €84.7 billion for the year – up 1 percent year-over-year on an organic basis – and a profit from ...

January 28, 2025 - By TFL

LVMH Reports €84.7B in 2024 Sales Amid “Unfavorable” Market Conditions

Image : Louis Vuitton

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LVMH Reports €84.7B in 2024 Sales Amid “Unfavorable” Market Conditions

LVMH says that it achieved a “solid performance” in 2024 “despite an unfavorable global economic environment.” The luxury goods group reported revenues of €84.7 billion for the year – up 1 percent year-over-year on an organic basis – and a profit from recurring operations of €19.6 billion (equating to an operating margin of 23.1 percent), a drop of 14 percent year-over-year. In terms of LVMH’s biggest division, Fashion & Leather Goods, revenue amounted to €42 billion (down from €42.1 in 2023); sales of Watches and Jewelry also fell by 3 percent to $10.6 billion. Growth came by way of LVMH’s selective retailing division, which includes Sephora, as well as its Perfume & Cosmetics group.

 

Regionally speaking, Europe and the U.S. posted growth on a constant consolidation scope and currency basis; Japan saw double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan.

Delving into the individual business divisions, a handful of points stood out. They are as follows …

Fashion & Leather Goods: Good resilience. Profit from recurring operations was down 10 percent, mainly affected by exchange rate fluctuations. Loro Piana, which celebrated one hundred years of history and exceptional craftsmanship in 2024, delivered a remarkable performance. Loewe was buoyed by growing brand awareness and the bold creativity of its collections. Rimowa confirmed its excellent momentum. 

> Perfumes & Cosmetics: Solid momentum in fragrances; selective distribution strategy maintained. The Perfumes & Cosmetics business group achieved organic revenue growth of 4 percent in 2024 thanks to the ongoing success of its flagship lines, powerful innovative momentum and a selective distribution policy. Profit from recurring operations was down 6 percent. Christian Dior delivered a very robust performance, [as] Sauvage continued to achieve solid growth, consolidating its position as the world’s leading fragrance. Makeup – in particular the Forever foundation line – also contributed to the Maison’s good results. 

> Watches & Jewelry: Further innovation in jewelry and watches. Revenue for Watches & Jewelry decreased by 2 percent on an organic basis in 2024. Profit from recurring operations was down 28 percent, partly due to ongoing investments in store renovations and communications, as well as exchange rate fluctuations. Tiffany & Co.’s flagship store on New York’s Fifth Avenue, and the first to be renovated – achieved record-breaking revenue in 2024 and became the world’s premier luxury store. Tiffany has seen revenue from high jewelry quadruple since the Maison’s acquisition, and operating profit double. Bulgari’s newly-launched Aeterna high jewelry collection achieved record-breaking revenue. 

A 10-year global partnership between LVMH and Formula 1 was announced, and in 2025, TAG Heuer will return as the Official Timekeeper of Formula 1 for all its circuits worldwide. 

> Selective Retailing: Remarkable performance by Sephora; DFS still held back by prevailing international conditions. The Selective Retailing business group posted organic revenue growth of 6 percent in 2024. Profit from recurring operations remained stable. Sephora delivered a remarkable performance, with double-digit growth in both revenue and profit. DFS (LVMH’s duty-free venture), which saw business activity remain below its 2019 pre-Covid level, was hard hit in particular by exchange rate fluctuations. 

Bernard Arnault, Chairman and CEO of LVMH, commented: “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.” 

Looking ahead to FY2025, Arnault is optimistic on the back of Louis Vuitton and Tiffany & Co. generating double-digit growth so far this year.

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