Companies

LVMH’s growth slows in the third quarter

Oct 12, 2023 France

The French-based luxury conglomerate posted an organic revenue growth of 9% in the third quarter, as compared to an organic growth of 17% recorded in the previous quarters of 2023

Overall, in the first nine months of the current fiscal year, the group’s revenue totalled 62.21 billion euros, which reflects an organic revenue growth of 14%, on a comparable basis to the same period of last year; Europe, Japan and the rest of Asia regions recorded double-digit organic growth in this period.

The highlight goes, however, to the 9% organic revenue increase registered in the third quarter of the year, as compared to the 17% growth recorded in the previous quarters. This figure suggests a slowdown in LVMH’s growth, with sales at the Wines & Spirits division falling by 14% year-over-year in the three months ended in September.

Fashion & Leather Goods

The Fashion & Leather Goods division posted an organic revenue growth of 16% in the first nine months of 2023, reaching 30.91 billion euros, on a comparable basis to a similar period of 2022. In the third quarter, its sales rose by 9% year-over-year, also reflecting a softening of the 18% and 21% growth registered in the first and second quarters of the year.

LVMH added that all brands in the segment performed well, underlining the “excellent performance” of Louis Vuitton and Christian Dior’s “remarkable growth in all its product categories”. Celine, Loewe, Loro Piana, Rimowa, Marc Jacobs and Berluti also did well.

Outlook

The luxury conglomerate stated that “in an uncertain economic and geopolitical environment”, remains “confident in the continuation of its growth and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in distribution and agile organization”.

Image Credits: numeromag.nl

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