The luxury goods leader reported lower-than-expected first-quarter sales, down 2% on a reported basis, weighed down by the impact of inflation on demand, and a Chinese market back to normal.
Lvmh is not off to a flying start this year.
On Tuesday, April 16, the world’s number one luxury goods group announced that its sales for the first quarter of 2024 would slow down, with organic growth of 3% and a 2% decline in published figures to 20.69 billion euros (versus 21 billion euros in the first quarter of 2023). The group cites a scope effect of -1% and a currency effect of -4%.
“After 17% last year (in the first quarter 2023, editor’s note), this is really not bad at all. We’re not dissatisfied,” CFO Jean-Jacques Guiony pleaded with journalists.
Nonetheless, the first quarter of 2024 saw a marked slowdown compared with 2023, a year in which Lvmh achieved organic growth of +13% to 86.2 billion euros. In the fourth quarter, organic growth slowed slightly (+10%), but remained above expectations.
Doping effect of the Paris Olympics?
At the time of the announcement of these still flamboyant 2023 results, Bernard Arnault, the Group’s CEO, was “very confident” about 2024. “An exceptional and inspiring year, marked” by its “partnership with the Paris 2024 Olympic and Paralympic Games”.
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Featured Photo: Spring-Summer 2024 campaign © David Sims/Louis Vuitton
