On January 28, the world’s largest luxury brand LVMH announced a Q4 earnings report exceeding the analyst’s expectations. For 2024, the company reported revenues of 84.68 billion euros ($88.27 billion), slightly surpassing the forecasted 84.38 billion euros. This represents 1% organic growth compared to last year. Analysts were expecting a 2% decline in revenue growth which was outperformed by the company’s organic growth of 1%.
Sales in the fourth quarter of December rose more than expected, bouncing back after a decline in the previous quarter, the first drop since the pandemic. The consumers in the US, Europe, and Japan majorly contributed to revenue growth while the luxury brands group lagged in the Asian region.
LVMH Q4 Earnings – Strong Recovery and Growth
Despite the dip, LVMH’s revenue growth offset the impact of currency changes and business sales, showing resilience in tough market conditions. Analysts were surprised by the LVMH Q4 earnings, and revenue boost, highlighting the brand’s strength in various sectors, though concerns linger over the falling profit margins.
The fashion and leather goods segment made up almost half (48.9%) of total revenue, with iconic brands like Louis Vuitton, Givenchy, and Fendi. The watches and jewelry division brought in 12.8%, led by TAG Heuer and Tiffany. Surprisingly, perfumes and cosmetics contributed 9.6%, with Dior and Guerlain leading the way.
LVMH Global Sales
The French luxury giant is seen as a key indicator for the entire luxury industry, which has struggled in recent years due to falling sales in China and broader economic challenges. Luxury shares got a boost earlier this month when Cartier owner Richemont reported its “highest ever” quarterly sales as shoppers returned during the festive season. On Friday, British fashion brand Burberry also posted a smaller-than-expected drop in third-quarter sales amid a major strategic overhaul.
On Monday, Jeffries analysts said in a note, “LVMH sale growth would better represent the luxury shopping trend as the company deals with a wide range of luxury items, including wine, spirits, watches, leather bags, cosmetics, and perfume.”
LVMH 2025 Outlook: What’s Ahead for Luxury Giant?
Bernard Arnault, 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.”
During a presentation after the release, Arnault highlighted a significant drop in cognac and spirits sales but anticipated a recovery within two years with a new team in place. He also mentioned that, despite ongoing global uncertainties, the outlook for 2025 was “starting well,” according to a translation.
LVMH Stock Update
After LVMH’s Q4 earnings report, investors have had mixed reactions to LVMH’s stock. On January 28, shares fell 0.94%, closing at €749.90. However, leading up to these results, the stock saw strong growth, rising 21.15% over the month despite recent fluctuations. Analysts and shareholders are closely watching LVMH’s strategy following the latest announcements.
