LVMH Beats Expectations, Signals Confidence for 2025
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Paris, France – Luxury giant LVMH (LVMH.PA) has announced better-than-expected sales for the fourth quarter of 2024, fueling optimism for the year ahead. Despite a challenging economic environment,the company reported a 1% organic growth in sales,reaching €23.93 billion ($25.89 billion) for the October-December period. This performance surpassed analyst expectations of a 1.6% decline.
LVMH’s success was driven by strong performances across several divisions. The fashion and leather goods division, home to iconic brands like Louis Vuitton and dior, saw sales nearly match the previous year’s levels.The distribution division, which includes Sephora, experienced a 7% sales increase, while the watches and jewelry division grew by 3%.
“We are confident for 2025,” stated Bernard Arnault, LVMH’s CEO, describing 2024 as a “solid” year. He expressed his ambition to further strengthen LVMH’s leading position in the luxury market.
While acknowledging that the results were not record-breaking, Arnault highlighted a positive trend in the final months of 2024, with both the US and European markets showing signs of enhancement.
The fashion and leather goods division, representing nearly half of LVMH’s revenue, saw a 1% decline in sales to €11.139 billion, a smaller drop than the 3.3% anticipated by analysts.
Despite the positive overall performance, some analysts remain cautious. Bernstein analysts noted that the results “did not meet the upwardly revised expectations” following recent strong performances by competitor Richemont.Thay pointed to Dior as an area where LVMH needs to improve.LVMH’s full-year 2024 sales reached €84.68 billion, reflecting a 1% organic growth compared to 2023. The company’s financial director, Jean-Jacques Guiony, attributed the growth to a “slight improvement trend” in the US and Europe, notably in the fashion and leather goods sector.
LVMH’s resilient performance in the face of economic headwinds underscores its enduring appeal and strong brand portfolio. the company’s focus on innovation, customer experience, and strategic acquisitions positions it well for continued success in the years to come.
Luxury giant LVMH reported a mixed fourth quarter,with growth in the US and Europe offset by a continued decline in Asia. Despite this, the company’s performance has fueled optimism among investors seeking signs of recovery in the luxury sector.
LVMH’s sales increased by 3% in the US and 4% in Europe during the fourth quarter,while they fell by 10% in Asia (excluding Japan). This decline, though smaller than the 16% drop seen in the previous quarter, reflects the ongoing challenges posed by the sluggish Chinese economy.
The company’s overall performance has been welcomed by analysts, who see it as a positive indicator for the luxury sector.
“The results were better than expected, particularly in the US,” said Luca Solca, an analyst at Bernstein. “This suggests that the sector is starting to recover from the post-pandemic slump.”
However, some analysts caution that the company’s results may not be enduring in the long term.
“LVMH faces several challenges in 2025, including the potential for trade wars and a slowdown in the Chinese economy,” said an analyst at RBC. “The company will need to continue to innovate and adapt to changing consumer preferences to maintain its growth.”
Despite these challenges, LVMH remains optimistic about its prospects. CEO Bernard arnault highlighted the strong performance in the US, noting the “optimism” he observed during a recent trip to the country.
“the US is a very important market for us, and we are confident that we can continue to grow there,” he said.
Arnault also called for greater economic reform in france, suggesting that the country could learn from the “can-do” attitude of the US.
The company’s performance has been reflected in its share price, which has risen significantly as the beginning of 2025. This surge in investor confidence suggests that the luxury sector is poised for a strong year.## Luxury Giants Cozy Up to New US Administration
The world of luxury is watching closely as a new administration takes the helm in the United States. With significant policy shifts on the horizon, industry leaders are seeking to ensure their businesses remain protected and thrive in the new landscape.
Experts suggest that close ties with the new administration are crucial for luxury brands operating in the US market.Luca Solca, a prominent analyst in the luxury sector, notes that it’s “logical” for major players in the industry to cultivate relationships with those in power. [[2]]
the US remains a powerhouse in the global luxury market, representing nearly one-third of all high-end sales of apparel, leather goods, and footwear. [[2]] This makes it a particularly important market for luxury brands to navigate successfully.The new administration’s policies on trade, taxation, and regulation will undoubtedly have a significant impact on the luxury industry. Brands are likely to be closely monitoring these developments and adjusting their strategies accordingly.
LVMH’s Q4 performance: A Conversation with Luxury Industry expert
Time.news: LVMH just reported better-than-expected sales for Q4 2024, signaling confidence for 2025. What does this performance tell us about the luxury market’s current state?
Expert: LVMH’s resilience in the face of economic headwinds is certainly encouraging. It shows that luxury remains a desirable sector, even amidst uncertainty. While they didn’t hit record numbers, the fact that they exceeded analyst expectations suggests a positive recovery trend. This performance, especially in the US, points towards a burgeoning market adn a strong consumer appetite for luxury goods.
Time.news: We see robust growth in the US and Europe but a decline in asia. What are the factors driving these regional differences?
Expert: The drop in Asia, while less drastic than previous quarters, is still concerning. china’s ongoing economic slowdown is certainly a major factor. But, it’s worth noting that the US and Europe are showing real momentum.Strong consumer confidence and pent-up demand – both fueled by easing pandemic restrictions – are likely playing a key role in this positive trend.
Time.news: Analysts have highlighted Dior as an area where LVMH could improve. What might be behind this observation?
Expert: Dior, despite being part of LVMH’s massive portfolio, needs to navigate the evolving tastes of luxury consumers. While it remains a strong brand, some analysts believe it might not be resonating as strongly with younger generations or adapting quickly enough to changing trends compared to some of its competitors.
Time.news: Can you shed some light on the strategic importance of LVMH’s focus on innovation and customer experiance?
Expert: in today’s competitive luxury market, innovation and customer experience are absolutely crucial. LVMH is investing heavily in both. They’re leveraging technology to enhance the customer journey, personalizing services, and creating immersive brand experiences.This is essential for attracting and retaining customers in a world where luxury brands are no longer just about the product; it’s about the entire experience.
Time.news: With the new US management in place, what are the potential implications for luxury brands like LVMH?
Expert: The new administration’s policies on trade, taxation, and regulation will undoubtedly impact the luxury sector.Strong relationships with the administration are vital to ensure their businesses thrive in the new landscape.
time.news: What advice woudl you give to luxury brands looking to navigate the complexities of the global market?
Expert: Luxury brands need to be agile and adaptable. Staying attuned to evolving consumer trends, embracing innovation, and building strong relationships across markets are crucial for long-term success. They also need to diversify their offerings and target markets strategically to mitigate risks and capitalize on emerging opportunities.