Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

LVMH Profit Beats Estimates as Fashion Unit Tops Expectations

LVMH, the world’s largest luxury company, reported annual profit that beat estimates as fashion and leather-goods sales exceeded expectations in the final quarter.
Louis Vuitton store | Source: Shutterstock
By
  • Bloomberg

PARIS, France — LVMH, the world's largest luxury company, reported annual profit that beat estimates as fashion and leather-goods sales exceeded expectations in the final quarter.

Profit from recurring operations advanced 16 percent to 6.61 billion euros ($7.2 billion), Paris-based LVMH said Tuesday after markets closed. Analysts predicted 6.5 billion euros, according to the average of 27 estimates. Fourth-quarter revenue rose 5 percent on an organic basis, topping the 3.9 percent median estimate.

Operating scores of brands across six product groups from fashion to champagne has helped cushion LVMH from slowing luxury demand. The French company’s flagship label Louis Vuitton is growing again after a revamp. Demand for Bulgari jewelry is offsetting weak watch sales, while sales of champagnes such as Krug and Veuve Clicquot are helping compensate for low consumption of X.O. cognac in China.

Fashion and leather-goods is LVMH’s largest division, accounting for more than a third of sales and more than half of earnings before interest and tax. Quarterly sales at the unit rose 3 percent, beating estimates for growth of 1 percent.

By Paul Jarvis; editors: Matthew Boyle, Thomas Mulier.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the fast-changing fashion sector, including markets, investors and deals.

The Best of BoF 2023: Diversity’s Litmus Test

In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.


The Year Ahead: The Future of Fashion Deal-Making

For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.


The Investment Giant Behind Some of Fashion’s Biggest Deals

L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections