On January 25, French luxury conglomerate LVMH announced that it recorded revenue of €86.2 billion in 2023, equating to organic growth of 13% with respect to 2022.
Organic sales growth in the fourth quarter was 10%. This was slightly higher than the 9% growth expected by analysts, with a 9% increase in the third quarter and a 17% increase in both the first and second quarters.
All business groups achieved significant organic revenue growth, except the Wine & Spirits division, which experienced a decline in revenue (-4% on an organic basis). Recurring profit declined 2%. However, double-digit organic growth was achieved in Europe, Japan, and the rest of Asia.
Bernard Arnault, Chairman and CEO of LVMH, commented in the release: “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. 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.”
Throughout 2023, the group staged stunning fashion shows for Louis Vuitton and Christian Dior, renovated and reopened Tiffany’s New York flagship store “The Landmark,” and enhanced the popularity of the Sephora store concept. In addition, the company made progress in several other key areas essential to its long-term vision, such as environmental protection, the development of new talent, and the continuation of craftsmanship.
The upcoming Paris 2024 Summer Olympic and Paralympic Games, to be held from July to September 2024, are also attracting worldwide attention as LVHM will provide full support as an official sponsor of the Olympics.
Last year, sales in the global luxury industry stagnated due to the impact of rising inflation, a decline in the number of young affluent consumers, and an increase in the number of consumers refraining from splurging.
On the other hand, the sales growth of LVMH, a conglomerate of liquor, jewelry, cosmetics, and luxury fashion, is seen as an indicator of the overall health of the luxury industry. Will other luxury companies be able to follow this strong trend and aim for a turnaround in their performance?