LVMH said total revenues were up 10 percent to EUR 24 billion (USD 26 billion) during the fourth-quarter, as high-end luxury shoppers proved resilient during the final three months of the year, despite the broader luxury slowdown affecting the industry.
Following the resilient quarter, sales for the full-year 2023 grew 13 percent, with the French luxury conglomerate recording organic across all business groups except wines and spirits, with double-digit organic growth seen in Europe, Japan and the rest of Asia.
By segment, the group’s perfumes and cosmetics business posted organic revenue growth of 11 percent in 2023, with Christian Dior “achieving a remarkable performance, extending its lead in its key markets,” while makeup and skincare also contributed to growth, with Fenty Beauty a bright spot.
The firm’s watches and jewelry business group recorded organic revenue growth of 7 percent in 2023, with special mention going to Tiffany, Bulgari and TAG Heuer, while the selective retailing business group posted revenue growth of 25 percent in 2023, with Sephora achieving “another historic year, both in terms of sales and profit.”
Finally, the group’s fashion and leather goods business grew 14 percent, buoyed by Louis Vuitton, Christian Dior, Celine, Fendi, Loro Piana, Loewe and Marc Jacobs, which gained market share worldwide and achieved record levels of revenue and profits, added the group.
The company’s wines and spirits business was the only segment to decline, down 4 percent in 2023. It did record growth in its champagne business, thanks to a good performance in Europe and Japan, offsetting the effects of an unfavorable macroeconomic environment in the United States. Hennessy cognac was also affected by a mixed recovery in China, it added.
“Our performance in 2023 illustrates the exceptional appeal of our maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges,” said Bernard Arnault, chairman and CEO of LVMH.
“The group once again recorded significant growth in revenue and profits. Our growth strategy, based on the complementary nature of our businesses, as well as their geographic diversity, encourages innovation, high-quality design and retail excellence, and adds a cultural and historical dimension thanks to the heritage of our maisons.
“While remaining vigilant in the current context, we enter 2024 with confidence, backed by our highly desirable brands and our agile teams. It promises to be an inspiring, exceptional year for us all, featuring our partnership with the Paris 2024 Olympic and Paralympic Games, whose core values of passion, inclusion and surpassing oneself are shared by our Group. For LVMH, it provides a new opportunity to reinforce our global leadership position in luxury goods and promote France’s reputation for excellence around the world,” added Arnault.
LVMH is regarded as a bellwether for the wider luxury industry, according to industry experts. Luxury rivals such as Richemont and Cucinelli have managed to buck the slowdown trend in their most recent trading updates, joining LVMH, while other competitors, such as London-based Burberry, have struggled.