It is a time of economic and political uncertainty, but demand for luxury goods remains undiminished. Sales last year amounted to 86 billion euros.
Strong demand for fashion, jewelry and perfume has brought luxury goods manufacturer LVMH another record year in 2023. Despite difficult economic times, wealthy people continued to stock up on handbags from Louis Vuitton, fragrances from Christian Dior and jewelry from Tiffany.
CEO Bernard Arnault expects further growth in 2024 – despite the economic and political uncertainties in the world. The news was well received on the stock market. They also boosted the share prices of other luxury goods companies.
Last year, LVMH increased sales by nine percent to more than 86 billion euros compared to 2022. If exchange rates had remained stable, the increase would have been 13 percent, as the group announced in Paris. With the exception of the wine and spirits business, all divisions increased sales and operating profit. The surplus grew by eight percent to 15.2 billion euros.
Business is returning to normal
However, the boom in demand from the period shortly after the corona pandemic is over. Business is returning to normal, said CFO Jean-Jacques Guiony. While sales rose by 17 percent after adjusting for currency effects in the first half of the year, the increase thereafter was just under 10 percent.
Business development was driven by by far the largest division of the group, the fashion and leather goods business. In addition to Louis Vuitton, this also includes brands such as Christian Dior, Kenzo and Givenchy as well as the suitcase manufacturer Rimowa. The division’s sales grew by 14 percent after adjusting for currency effects to more than 42 billion euros. That’s almost half of the group’s revenue.
Source: Stern
