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Fashion & Leather Goods Lead Q3 2024 with €9,15 Billion Revenue, Perfumes & Cosmetics Achieve 5% Year-to-Date Growth
Sectors & Markets
23 October, 2024
Table of contents
On 15 October 2024, LVMH Moët Hennessy - Louis Vuitton, the world’s premier luxury conglomerate, released its third-quarter financial report, covering the first nine months of 2024. Despite a challenging economic climate and a high comparison base from post-Covid growth, LVMH posted €60,8 billion in revenue, remaining stable on an organic basis. The Group demonstrated resilience in core markets, showing slight growth in both Europe and the United States, while Japan achieved double-digit revenue growth, largely supported by strong spending from Chinese consumers across Europe and Japan.
The third-quarter revenue breakdown across LVMH’s core divisions reflects its diverse portfolio and regional performance adjustments. Below is a table comparing the third-quarter revenue for 2023 and 2024, highlighting percentage growth or decline:
| Business Segment | Q3 2023 Revenue (€M) | Q3 2024 Revenue (€M) | % Growth/Decline |
|---|---|---|---|
| Wines & Spirits | 1.509 | 1.386 | -8% |
| Fashion & Leather Goods | 9.750 | 9.151 | -6% |
| Perfumes & Cosmetics | 1.993 | 2.012 | +1% |
| Watches & Jewellery | 2.524 | 2.386 | -5% |
| Selective Retailing | 4.076 | 3.927 | -4% |
| Total LVMH | 19.964 | 19.076 | -4% |
Fashion & Leather Goods, the Group’s largest revenue driver, showed resilience, with only a minor decline of 1% over the first nine months and a 6% reduction in Q3 compared to 2023. Wines & Spirits saw a revenue decrease due to lower demand, especially in China for Hennessy cognac, although sales in the U.S. picked up in Q3 2024. Selective Retailing, led by Sephora, recorded a 6% organic revenue increase for the first nine months, despite a third-quarter dip due to varying tourist traffic.
LVMH’s geographical revenue distribution reveals the impact of regional demand dynamics on overall performance. While specific figures per region for Q3 were not detailed, the Group reported slight growth in both Europe and the United States for the first nine months of 2024, driven by steady demand and an increase in spending by Chinese tourists. Japan was a standout market, achieving double-digit revenue growth year-to-date, though Q3 showed some moderation due to the stronger yen. The broader Asia region saw robust demand in both Japan and Europe, largely driven by Chinese consumer activity.
| Region | Growth Trend | Key Factors |
|---|---|---|
| Europe | Slight Growth | Driven by local demand and high Chinese tourist spend |
| United States | Slight Growth | Stable demand in key categories |
| Japan | Double-Digit Growth | Strong local demand; moderated by yen fluctuations |
| Rest of Asia | Positive, Strong Demand | Boosted by Chinese consumer spending in Europe & Japan |
Performance across LVMH’s brand portfolio demonstrates both strengths and challenges in meeting diverse consumer needs. While brands like Louis Vuitton, Christian Dior, and Guerlain delivered growth, Watches & Jewellery brands such as Tiffany & Co. and Bulgari leaned on legacy campaigns and high-profile endorsements. Selective Retailing, especially Sephora, benefited from increased market share, significantly contributing to the Group's overall results.
LVMH has maintained its commitment to environmental, social, and governance (ESG) standards, advancing sustainable practices across operations. The Group has expanded sustainable packaging efforts, introduced energy-efficient supply chains, and increased its use of upcycled materials within its Leather Goods division. Additionally, the recent Formula 1 partnership, beginning in 2025, will incorporate LVMH’s iconic Maisons into an innovation platform with sustainability at its core.
Key ESG Highlights (2024)
| ESG Initiative | Description |
|---|---|
| Sustainable Packaging | Expanded across product lines |
| Circular Economy in Leather Goods | Increased use of upcycled materials |
| Carbon Emissions Reduction Goals | Long-term focus on minimising emissions |
| Formula 1 Partnership | Integrates sustainability from 2025 |
Future ESG objectives include reducing carbon emissions by a targeted percentage by 2030, expanding sustainable sourcing efforts, and increasing transparency across supply chains, contributing to LVMH’s mission to lead in circular fashion.
In summary, LVMH’s third-quarter performance underlines its strategic adaptability in an uncertain market environment. Though a minor revenue contraction occurred in Q3 2024, growth within selective retailing and perfumes and cosmetics highlights long-term brand strength. Despite challenges in the Wines & Spirits and Watches & Jewellery sectors, the Group’s innovation-led portfolio and robust presence in Japan and China position it well for future growth.
Further analysis suggests that expanding selective retailing and Watches & Jewellery could create additional opportunities, particularly through digital channels and personalised luxury. Targeted strategies could help LVMH strengthen its resilience and achieve sustained growth across regions and business segments.
Read the full LVMH Group report Here.
Cover Image Courtesy: Louis Vuitton Website