Not all images were able to load for printing. Please close the print window and try again. Moderate Growth for LVMH in 2024 in a Challenging Environment, Watches barely Impacted
Revenues down 2% for the Watches and Jewelry Group
In the context of a global decline of the luxury goods demand, LVMH, the world’s largest luxury goods group, reported revenues of EUR 84.7 billion for 2024, +1% on an organic basis, after a record performance in 2023. In the fourth quarter, organic revenue growth came to 1%, accelerating with respect to the third quarter. Profit from recurring operations came to EUR 19.6 billion down 14% versus 2023. For what is our main concern here at MONOCHROME, the sales of the Watches and Jewelry Business Group are reported at EUR 10,507 million, down 2% on an organic basis.
Taking a look at the breakdown of sales by regions, the performance was supported by double-digit growth in Japan (+28%, 9 % of revenues) thanks to a stronger yen, and moderate growth for the United States (+3%, 25% of revenues) and Europe (+2%, 25% of revenues) while the revenues in Asia (-11%, 28% of revenues) were affected by the uncertainties in China.
The trend was contrasted among the different Business Groups. For Watches and Jewelries, revenues are down 2% on an organic basis at EUR 10.507 million with an improvement over the last quarter (+3%). The lower profit for recurring operations (-28%) is reported to be partly due to ongoing investments in store renovations and communications, as well as exchange rate fluctuations.
In January 2024, the group announced the creation of a new entity, LVMH Watches, as well as its CEO, Frédéric Arnault. In July, Antoine Pin took over the CEO role at TAG Heuer while Julien Tornare replaced Ricardo Guadalupe at the head of Hublot. The announcement of LVMH’s 10-year global partnership with Formula 1 was a major highlight, in which several of LVMH’s Maisons – in particular TAG Heuer for timekeeping – will be involved starting in 2025. The brand introduced its new Formula 1 collection a few days ago in the frame of the LVMH Watch Week.
As a comparison, Richemont reported sales up 4% at constant exchange rate for the 9-month period ended in December 2024.
For more information, please visit www.lvmh.com.
