LVMH Moët Hennessy Louis Vuitton has disclosed a net profit contraction of 17%, amounting to €12.55bn ($13.09bn), for the fiscal year 2024 (FY24).
This represents a downturn from the €15.17bn reported in FY23.
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The company’s profit from recurring operations also witnessed a decline of 14%, settling at €19.57bn in FY24 compared to €22.80bn in FY23, translating to an operating margin of 23.1%.
LVMH’s revenue dipped by 2% to €84.68bn in FY24 from €86.15bn in FY23.
Europe and the US exhibited revenue growth on a constant consolidation scope and currency basis.
Japan experienced double-digit revenue expansion, while other Asian markets demonstrated robust growth, propelled by heightened expenditure from Chinese consumers in Europe and Japan.
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By GlobalDataThe wine and spirits segment of LVMH reflected ongoing normalisation of demand, underway since 2023, with revenues of €5.86bn.
The fashion and leather goods sector maintained a robust trajectory with revenues hitting €41.06bn, albeit with a slight decrease of 3% from €42.16bn in the previous fiscal year.
This sector’s success was attributed to the compelling allure of its product offerings and an exceptionally high operating margin.
Sephora stood out with a strong performance, registering double-digit increments in both top-line revenue and profits.
LVMH also reported a reduction in net financial debt by 14%, which decreased to €9.22bn from €10.74bn.
LVMH chairman and CEO Bernard Arnault stated: “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 fiscal 2025, despite persistent uncertainty in geopolitical and macroeconomic climates, LVMH remains optimistic.
The group intends to continue its focus on brand development through sustained innovation and investment, coupled with the ongoing pursuit of desirability and quality in its products and selective distribution channels.
