Companies

LVMH reports drop in third quarter revenue

Oct 16, 2024 France

The luxury group has reported a 3% decline in organic revenue in the third quarter of the year, as compared to the same period of last year, including a 5% year-on-year decline in its fashion and leather goods division

In the third quarter of fiscal 2024, LVMH’s total revenue totalled 19.08 billion euros, a decrease of 3% excluding the impact of exchange rates, acquisitions and divestments, on a comparable basis to the same period of last year. “The slight decline in revenue mainly arose from lower growth seen in Japan, essentially due to the stronger yen”, said the company in a statement.

The fashion and leather goods division, which accounts for almost half of the group’s revenue, reported a 5% decline in organic revenue in the third quarter to 9.16 billion euros, as compared to the same period in 2023. According to Reuters, this was well below consensus expectations for 4% growth, and the first decline for the business since 2020 during the height of the pandemic.

Overall, in the first nine months of the year, LVMH’s total revenue was 60.75 billion euros, flat on an organic basis and down by 2% on a reported basis, as compared to the same period of the previous year. Regionally, Europe and the US grew slightly on a constant scope and currency basis; Japan continued to grow at a double-digit rate; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan.

The France-based group stressed that these results were achieved “despite the current context and a high base of comparison, following several years of exceptional post-Covid growth”.

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