LVMH Reports €20.7 Billion Revenue in Q1 2024 Despite Uncertain Economic Climate
Paris, France – April 2024
LVMH Moët Hennessy Louis Vuitton, the global leader in luxury goods, has announced its first-quarter revenue of €20.7 billion, reflecting organic growth of 3%. Despite prevailing uncertainties in the geopolitical and economic landscape, LVMH had a strong start to the year.
Regional Performance and Revenue by Business Group
Europe and the United States experienced growth in constant currency and consolidation scope basis during the quarter. Japan particularly stood out with double-digit revenue growth, while the rest of Asia reflected robust spending by Chinese customers in Europe and Japan.
Revenue by Business Group:
- Wines & Spirits: The business group witnessed a revenue decline of 12% organically in Q1 2024. Champagne sales were impacted by a normalization of post-Covid demand, while Hennessy cognac faced cautious ordering from retailers in the uncertain U.S. market.
- Fashion & Leather Goods: This segment achieved organic revenue growth of 2% in Q1 2024. Louis Vuitton led the charge with impressive performances, celebrating Nicolas Ghesquière’s ten-year tenure and unveiling visionary collections. Christian Dior continued to soar with creative momentum, supported by monumental showcases and high-profile launches.
- Perfumes & Cosmetics: Organic revenue growth reached 7%, driven by strong innovation and selective distribution. Christian Dior and Guerlain contributed significantly to the group’s success, with iconic fragrances and skincare lines driving rapid growth.
- Watches & Jewelry: The business group reported a slight decline of 2% organically in Q1 2024. Tiffany & Co. continued its global expansion with innovative store concepts, while Bulgari and Chaumet showcased iconic collections and announced significant initiatives.
- Selective Retailing: Sephora led the way with remarkable growth, expanding its market share globally. Although DFS remained below pre-Covid levels, Sephora’s strong performance in North America, Europe, and the Middle East fueled overall organic revenue growth of 11%.
Future Outlook
Amidst the uncertain economic environment, LVMH remains vigilant yet confident in its strategic direction. The Group will continue to focus on brand development, innovation, and investment to reinforce its position as a global leader in luxury goods. Leveraging the talent of its teams and the diversity of its businesses, LVMH is poised for further growth and success in 2024.
The real story
The real story behind LVMH’s reported revenue for Q1 2024 reflects both successes and challenges across its various business segments and regions.
Despite recording a total revenue of €20.7 billion, showcasing a 3% organic growth, LVMH faced headwinds in certain sectors. The Wines & Spirits division saw a decline of 12%, primarily due to reduced demand for champagne post-Covid normalization and cautious ordering of Hennessy cognac by retailers in the United States. Similarly, the Watches & Jewelry segment reported a slight decline of 2% organically, with Tiffany & Co. continuing its expansion efforts while facing challenges in some markets.
However, there were notable bright spots in the report. The Fashion & Leather Goods division achieved a 2% organic revenue growth, propelled by Louis Vuitton’s strong performance and successful launches by Christian Dior, including iconic fragrances and skincare lines. Additionally, the Perfumes & Cosmetics segment saw robust growth of 7%, driven by strong demand for Christian Dior and Guerlain products.
In Selective Retailing, Sephora’s remarkable growth, particularly in North America, Europe, and the Middle East, contributed to an overall organic revenue increase of 11%. However, DFS, while showing signs of recovery, remained below its pre-Covid levels of business activity.
Looking ahead, LVMH remains cautiously optimistic, continuing its strategic focus on brand development, innovation, and investment to maintain its global leadership position in the luxury goods market. With a diverse portfolio of brands and a talented workforce, LVMH aims to navigate the uncertain economic environment and capitalize on opportunities for growth in 2024.
For more information, please visit LVMH.com.