Bernard Arnault Has Every Reason To Be Happy as LVMH Reports Stronger-Than-Expected Sales

LVMH, the world’s largest luxury conglomerate, has reported better-than-anticipated full-year sales for 2024, marking a potential turnaround for the high-end sector.

The company, which owns prestigious brands such as Louis Vuitton, Moët & Chandon, and Hennessy, recorded revenues of $88.27 billion for the year.

LVMH’s organic growth reached 1% compared to the previous year, while fourth-quarter sales rose more than expected, reversing a decline in the previous three-month period—the first since the pandemic. Growth was driven by strong consumer demand in Europe, the U.S., and Japan, though the company noted continued weakness in the broader Asian market.

Bernard Arnault, LVMH’s chairman and CEO, stated that despite global uncertainty, the company had demonstrated strong resilience. He emphasized that LVMH’s ability to navigate turbulent times had been proven repeatedly throughout its history, underscoring the strength and relevance of its long-term strategy.

The group’s selective retailing unit, including Sephora, as well as its perfume and cosmetics division, contributed significantly to the positive results. However, its fashion and leather goods segment, along with wines and spirits, continued to face challenges.

During a post-results presentation, Arnault acknowledged a sharp decline in cognac and spirits sales but expressed confidence that the segment would recover within two years under new leadership. He also noted that, despite ongoing geopolitical and macroeconomic uncertainties, LVMH’s 2025 outlook had started on a positive note, according to a translated statement.

As a major player in the luxury industry, LVMH’s performance is closely watched as an indicator of broader market trends. The sector has faced mounting pressure in recent years due to declining sales in China and wider macroeconomic challenges.

Earlier this month, Richemont, the parent company of Cartier, lifted market sentiment by reporting its highest-ever quarterly sales as consumers returned to stores during the holiday season. Meanwhile, Burberry reported a smaller-than-expected decline in fiscal third-quarter sales, citing progress in its ongoing strategic overhaul.

However, Jefferies analysts noted in a recent report that LVMH’s results would serve as a more accurate measure of luxury industry trends due to its diverse portfolio spanning wines and spirits, fashion and leather goods, watches and jewelry, and cosmetics and perfume.

LVMH’s stock has risen approximately 18% year-to-date, following a 13% decline in 2024. Earlier this month, the company reclaimed its position as Europe’s most valuable company, surpassing Danish pharmaceutical giant Novo Nordisk.

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