Companies

LVMH reports stable performance after a difficult year in 2024

Jan 29, 2025 France

Amidst a challenging global economic environment, the France-based luxury group has reported stable 2024 results, highlighting a slight acceleration in growth in the fourth quarter

“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”, said Bernard Arnault, Chairman and CEO of LVMH.

The group’s revenue reached 84.7 billion euros in 2024, down by 2% on a reported basis and up by 1% on an organic basis, as compared to the previous year and following several years of exceptional post-Covid growth. In the fourth quarter, organic sales growth accelerated to 1% from minus 3% in the previous quarter to 23.9 billion euros, driven by Asia, the United States and Europe.

LVMH’s full year profit from recurring operations decreased by 14% year-on-year to 19.6 million euros, representing an operating margin of 23.1%, still well above pre-Covid levels. The Group also recorded a 29% increase in operating free cash flow to 10.5 billion euros. Net income, however, decreased by 17% year-on-year to 15.2 billion euros.

The company also noted a significant negative impact on profits from foreign exchange movements, particularly in Fashion & Leather Goods and Wines & Spirits.

Fashion & Leather Goods

The fashion and leather goods division recorded a full year revenue decline of 3% on a reported basis and 1% on an organic basis to 41.1 billion euros, on a comparable basis to the fiscal year 2023.

According to the statement, “Japan delivered an excellent performance and Europe (excluding France) posted slight growth, while revenue declined in the United States and Asia (excluding Japan)”.

Its profit from recurring operations was down by 10% year-on-year to 15.2 billion euros, mainly affected by exchange rate fluctuations.

Outlook

The luxury group believes that 2025 is off to a good start. “While remaining highly vigilant with regard to cost management and our single-minded focus on the desirability of our designs, we enter 2025 with confidence. Guided by our mission – ‘Passionate about creativity’ – and our core values, the Group will rely on the agility and talent of its teams to set the stage for future success and further extend its leadership in the luxury market”, concluded Arnault.

Image Credits: rain-mag.com

France Fashion Luxury LVMH Quarter Results Results Year Results