Slump in luxury spending slows LVMH sales growth

LVMH Moët Hennessy Louis Vuitton recorded revenue of 41.7 billion euros in the first half of 2024, achieving organic growth of 2 percent but down 1 percent reported. In the second quarter, organic revenue growth was 1 percent.

The luxury conglomerate said in a statement that the growth continued over the first half period despite a geopolitical and economic environment that remained uncertain.

Profit from recurring operations reached 10.7 billion euros down 8 percent, equating to an operating margin of 25.6 percent. The group share of net profit amounted to 7.3 billion euros, a drop of 14 percent.

Commenting on the trading results, Bernard Arnault, chairman and CEO of LVMH, said: “The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty.”

Review of LVMH’s first half performance

The company added that Europe and the United States achieved growth on a constant consolidation scope and currency basis; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan.

The fashion & leather goods business group recorded organic revenue growth of 1 percent to 21.2 billion euros, while the profit from recurring operations was down 6 percent.

The perfumes & cosmetics business segment achieved an organic revenue growth of 6 percent to 4,028 million euros, while profit from recurring operations remained stable.

The watches & jewelry business saw a revenue decline of 3 percent organic to 5,427 million euros with profit from recurring operations down 19 percent, heavily affected by exchange rate fluctuations.

In Selective Retailing, organic revenue growth was 8 percent to 8,355 million euros and profit from recurring operations was up 7 percent.

LVMH announces interim dividend

Commenting on the outlook, LVMH said that In an uncertain geopolitical and economic environment, the group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands.

The company announced an interim dividend of 5.50 euros, which will be paid on December 4, 2024.