In the ongoing saga of the luxury industry, LVMH finds itself grappling with difficulties typical of the sector.
LVMH Moët Hennessy Louis Vuitton, the world's leading luxury group, has reported a 2% decline in revenue for the first nine months of 2024, amounting to €60.8 billion. This decline comes amidst an uncertain economic and geopolitical environment, yet the company remains optimistic about its forward outlook.
In the fashion and leather goods division, which accounts for the largest portion of LVMH's business, revenue fell by 6.1%. The decline was "broadly stable on an organic basis over the first nine months of 2024." The company attributes this decrease to "strong growth in spending by Chinese customers in Europe and Japan."
Despite the decline, the fashion division "showed good resilience and gained market share." LVMH noted solid momentum for its Loro Piana, Loewe, and Rimowa brands.
The third quarter saw a 4.4% year-over-year decline in revenue, reaching €19 billion. The watches and jewelry segment also experienced a decline of 5.4% for the period.
Notably, Michael Rider has been appointed as the creative director at Celine, while Sarah Burton has taken the helm at Givenchy. These appointments are likely to contribute to the company's efforts to maintain a strategy focused on enhancing the desirability of its brands.
LVMH expressed confidence in navigating the current challenges, citing the high visibility of its Louis Vuitton and Christian Dior brands at the Paris 2024 Olympic and Paralympic Games as a potential growth driver. However, no information was provided regarding the impact of the games on LVMH's revenue.
The company's stock fell following the reported results, reflecting investor concerns about the decline in revenue and the uncertain economic climate. Despite this, LVMH remains optimistic about its future, emphasising its resilience in the current context.
