LVMH Reports Modest Growth as Luxury Sector Faces Ongoing Challenges

The French luxury giant posted a 1% rise in Q4 sales, driven by selective retailing, but investor concerns linger over broader recovery prospects.

LVMH recorded €84.7 billion ($88.27 billion) in revenue for 2024, a 2% decline year-over-year, but slightly above analyst expectations.
The group's Q4 sales grew 1% organically, supported by strong performance from Sephora and fragrances, while fashion and leather goods showed slower declines than anticipated.
Weakness in China, particularly due to economic challenges, continued to weigh on LVMH's performance, though sales in the U.S., Europe, and Japan showed improvement.
Investors reacted negatively, with LVMH's stock dropping over 5%, as results fell short of optimism spurred by stronger performances from rivals like Richemont and Burberry.
CEO Bernard Arnault expressed confidence for 2025, highlighting resilience in challenging times and ongoing efforts to streamline operations, including leadership changes in underperforming divisions like wine and spirits.