LVMH: slowdown in growth in the first quarter

(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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