Revenue growth continues to slow at luxury conglomerate LVMH – home to Louis Vuitton, Dior, Celine, Tiffany, and 70 other top brands. LVMH reported revenues for the first half (H1) of 2024 dipping one percent (1%) compared to H1 2023 a very strong growth period.
Second-quarter revenue growth fell to 1%, down from 3% in the first quarter of 2024. Overall revenue was €41.68 billion with profits dropping 14% in a year-over-year comparison for the period.
Read:
LVMH Reports SlowerRevenue Growth for 2024 Q1
LVMH Sales Revenues Continue to Rise in the First Half of 2023
Terming the results “good . . . despite the prevailing environment,” Bernard Arnault, Chairman and CEO of LVMH said:
The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty . . . While remaining vigilant in the current context, the Group approaches the second half of the year with confidence . . . “
As anticipated, sales in China (known as Asia not including Japan) are down 10%, but, according to LVMH, that doesn’t tell the complete story about the Chinese customer. Revenue in Japan is up 44% for the first six months of 2024, with a 57% jump in just Q2, as the weak yen has Chinese mainlanders (and others) flocking to Japan for luxury shopping. China’s proportion of revenue was 30% down from 34% in H1 2023 while Japan’s increased to 9% from 7%.
Sales revenues in Europe and the United States remain roughly the same on an organic basis, with increases of 3% and 2%, respectively over the same period of 2023. Europe’s share of overall revenues (not including France) was 16% (up year over year from 15%) and France remained steady at 8%. The United States accounted for 25% of revenues, up 1% from H1 2023.
