(AOF) – LVMH achieved sales of 20.7 billion euros in the first quarter of 2024. Over this period, organic sales growth stood at 3%, despite a geopolitical and economic context which remains uncertain. In published data, revenues fell by 2% compared to the first quarter of 2023 (21.03 billion euros). “Europe and the United States are growing at comparable currencies and scope over the quarter; Japan is achieving double-digit growth in sales,” specifies the luxury giant.
Furthermore, the rest of Asia reflects the strong growth in spending by Chinese customers in Europe and Japan.
The Wines and Spirits activity recorded a drop (-12% organic) in sales in the first quarter of 2024 to 1.41 billion euros. The Champagne activity is in decline in a context of normalization of post-Covid demand. Hennessy cognac is still penalized by the caution of retailers who are limiting their orders in a still uncertain context in the United States.
The Watches and Jewelry activity fell slightly (-2% organically) in this first quarter to 2.46 billion euros.
On the other hand, the Fashion and Leather Goods activity achieved organic growth of 2% in sales in the first quarter of 2024 thanks to its Louis Vuitton brand. They amount to 10.49 billion euros
With organic growth of 7% in sales to 2.18 billion euros, the Perfumes and Cosmetics business benefits from strong innovation dynamics and its selective distribution strategy.
In Selective Distribution, organic sales growth was 11% in the first quarter of 2024, amounting to 4.17 billion euros.
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Contrasting performances in beauty
Penalized by the Chinese market, Estée Lauder suffered a drop in sales of 10% to $15.9 billion for its 2022-2023 annual financial year, which ended at the end of June. The American group’s net profit even fell by 58% over one year to $1.01 billion. In a dynamic global beauty market, the group is therefore showing poor performance, while its rival, Coty, has published very good results. For the year 2022-2023, closed at the end of June, its sales jumped 12%, to 5.55 billion euros, exceeding analysts’ forecasts. Its operating profit more than doubled and its adjusted profit rose 20%. The group intends to continue its move upmarket to exceed 6 billion euros in turnover by 2026. As for L’Oréal, the group recorded a turnover of 20.6 billion euros in first half, up 12% year-on-year. Its net profit increased by 4% to 3.35 billion euros. However, in the third quarter, the growth in activity of the global cosmetics giant slowed down (+4.5% year-on-year), penalized by its sales in China. These players benefit from a beauty market which is expected to grow annually by 6% on average by 2028 according to McKinsey,