LVMH Reports Better-Than-Expected Full-Year Sales, Signaling Potential Turnaround in Luxury Sector
The world’s largest luxury company, LVMH, has reported full-year sales of 84.68 billion euros ($88.27 billion), exceeding expectations and signaling a potential turnaround in the high-end sector. The company, which owns brands such as Louis Vuitton, Moët & Chandon, and Hennessy, posted organic growth of 1% compared to the previous year.
The strong results were driven by a solid performance in its selective retailing unit, which includes Sephora, as well as perfume and cosmetics. However, the group’s fashion and leather goods, and wine and spirits segments continued to lag. Despite ongoing geopolitical and macroeconomic uncertainties, LVMH’s chairman and CEO, Bernard Arnault, expressed optimism about the company’s outlook for 2025.
LVMH’s results are seen as a bellwether for the wider luxury industry, which has faced significant pressure over recent years amid declining China sales and broader macroeconomic headwinds. The company’s shares are currently up around 18% year-to-date, having fallen more than 13% in 2024. Earlier this month, LVMH surpassed Danish pharmaceutical giant Novo Nordisk to regain the title of Europe’s most valuable company.
The company’s strong performance in the fourth quarter, led by consumers in Europe, the U.S., and Japan, is a positive sign for the luxury sector. The group’s continued weakness in the wider Asia region, however, remains a concern. Despite this, LVMH’s results provide a better indicator of broader luxury trends, given the company’s reach across a broad array of categories.