The world's largest luxury company LVMH on Tuesday reported better-than-expected full-year sales, in the strongest sign yet of a potential turnaround in the high-end sector.
The owner of brands including Louis Vuitton, Moët & Chandon and Hennessy posted revenues of 84.68 billion euros ($88.27 billion) for 2024, versus the 84.38 billion euros forecast by LSEG analysts.
The full-year figure equates to organic growth of 1% versus the previous year, the company said.
Sales also rose more than expected in the fourth quarter to December, after falling for the first time since the pandemic in the three months prior. The growth was led by consumers in Europe, the U.S. and Japan, while the group cited continued weakness in the wider Asia region.
"In 2024, amid an uncertain environment, LVMH showed strong resilience. This capacity to weather the storm in highly turbulent times — already illustrated on many occasions throughout our Group's history — is yet another testament to the strength and relevance of our strategy," Bernard Arnault, chairman and CEO of LVMH, said in a statement.
The results were driven by particularly solid performance in its selective retailing unit, which includes Sephora, as well as perfume and cosmetics. The group's critical fashion and leather goods, and wine and spirits segments, however, continued to lag.
Speaking during a presentation shortly after the release, Arnault noted a substantial decline in the company's cognac and spirits sales, but said he expects a recovery within two years as a new team takes over.
He added that, despite ongoing geopolitical and macroeconomic uncertainties, the group's outlook for 2025 was "starting well," according to a translation.
The French luxury goods giant is seen as a bellwether for the wider luxury industry, which has faced significant pressure over recent years amid declining China sales and broader macroeconomic headwinds.
Luxury shares were buoyed earlier this month when Cartier owner Richemont reported its "highest ever" quarterly sales figure as consumers returned to stores over the festive shopping period. British fashion house Burberry on Friday also reported a shallower-than-expected dip in the fiscal third-quarter sales amid an ongoing strategic overhaul.
However, Jefferies analysts said in a note Monday that LVMH's results would provide a "better indicator of broader luxury trends," given the group's reach across a broad array of categories including wines and spirits, fashion and leather goods, watches and jewelry, and cosmetics and perfume.
Shares in LVMH are currently up around 18% year-to-date, having fallen more than 13% in 2024. Earlier this month, the group surpassed Danish pharmaceutical giant Novo Nordisk to regain the title of Europe's most valuable company.
