LVMH also suffers, and slowing down conspicuously. In the second quarter 2024, organically, revenue grew 1% (+3% in the first quarter). Overall, revenue for the first half of the year amounted to 41.7 billion euro compared to 42.2 billion of the same period of 2023. That means a decline of 1%, but a 2% organic increment. Revenue from the Fashion & Leather Goods division lost 2% in the six-month period (+1% organically).
LVMH also suffers
Results for the April-June 2024 period disappointed analysts’ estimates. Who, according to an LSEG survey, expected revenues of 21.6 billion euros, compared to 21 billion stated (source: Reuters). Data confirming the slowdown in the industry’s growth. “The results for the first half of the year reflect LVMH’s remarkable resilience”, states Bernard Arnault (in photo), CEO of the French luxury group. “While remaining vigilant in the current environment”, Arnault continues, “the group faces the second half of the year with confidence”. A confidence that is “relying on the agility and talent of its teams to further strengthen its global leadership position in the luxury goods sector”.
Fashion & Leather Goods -2%
The Fashion & Leather Goods division of the French group held “well.” Operating margin remained “at an exceptional level, especially for flagship brands Louis Vuitton and Christian Dior“. The division reported organic sales growth of 1% in the first half of 2024, while profit from recurring operations declined 6%. Operating margin remained at historically high levels. In the second quarter, this division’s revenue amounted to 10.3 billion euro, compared to 10.4 billion euro in the same period in 2023. With regards to geography, LVMH highlighted the weakness of Chinese consumers, justifying it with the purchases they made in Europe and Japan.
Read also:
