“LVMH’s FY24 results, while slightly ahead on sales, disappointed the market due to elevated expectations following multiple stronger beats from peers,” noted UBS analysts in a report released Wednesday. The lukewarm response was reflected in the stock market, with LVMH shares dropping 5% in Paris trading. Gucci owner Kering saw a similar decline, while Hermès and Burberry shares remained flat. Richemont, however, bucked the trend, rising around 2% in Swiss trading.
The luxury sector has been a rollercoaster in recent years, and 2024 proved no exception. LVMH, the global powerhouse behind iconic brands like Louis Vuitton and Dior, reported a modest 1% organic sales increase for the year, reaching €84.68 billion ($88.27 billion). While this figure slightly surpassed analyst expectations of €84.36 billion, it fell short of the optimism that had been building in the luxury market.
The luxury sector has been a rollercoaster in recent years, and 2024 proved no exception. LVMH, the global powerhouse behind iconic brands like Louis Vuitton and Dior, reported a modest 1% organic sales increase for the year, reaching €84.68 billion ($88.27 billion). While this figure slightly surpassed analyst expectations of €84.36 billion, it fell short of the optimism that had been building in the luxury market.
The underwhelming results came on the heels of stronger performances from rivals, which had fueled hopes of a broader industry recovery. British heritage brand Burberry and Richemont, the parent company of Cartier, both delivered better-than-expected results, with Richemont even posting record quarterly sales. These successes had led investors to believe that the luxury sector was finally turning a corner after a challenging period marked by slowing demand post-pandemic and a pullback in spending by Chinese consumers, who have been grappling with a real estate downturn.
The luxury sector’s post-Covid boom has been losing steam, and LVMH’s tepid growth highlights the challenges even industry leaders face in navigating shifting consumer behavior and economic headwinds. While the company remains a dominant force in the global luxury market, its 2024 performance serves as a reminder that the road to recovery may be slower and more uneven than anticipated.
For now, all eyes are on whether LVMH can reignite growth in the coming year—and whether the luxury sector’s recent glimmers of hope will translate into sustained momentum.
The luxury sector’s post-Covid boom has been losing steam, and LVMH’s tepid growth highlights the challenges even industry leaders face in navigating shifting consumer behavior and economic headwinds. While the company remains a dominant force in the global luxury market, its 2024 performance serves as a reminder that the road to recovery may be slower and more uneven than anticipated.
For now, all eyes are on whether LVMH can reignite growth in the coming year—and whether the luxury sector’s recent glimmers of hope will translate into sustained momentum.