LVMH Moët Hennessy Louis Vuitton, the world leader in luxury goods, recorded an impressive revenue of EUR 60.8 billion in the first nine months of 2024.
Despite the challenging global economic environment and a high comparison base following several years of exceptional post-Covid growth, the group's revenue remained stable on a constant consolidation scope and currency basis. Key markets, including Europe and the United States, saw slight growth, while Japan posted double-digit growth in revenue. Meanwhile, increased spending by Chinese customers in Europe and Japan contributed significantly to LVMH’s results across the Asian market.
Performance by Region
Europe and the United States: LVMH continued to benefit from steady demand in Europe and the U.S., despite a more cautious consumer landscape. The post-Covid surge in luxury spending that characterized recent years began to normalize, but the luxury group still posted slight growth in these regions. High demand for premium fashion and luxury accessories, along with robust travel retail sales in major European cities, contributed to this positive performance.
Japan: Japan remained a strong performer for LVMH, achieving double-digit growth through the first nine months of 2024. However, revenue growth slowed slightly in the third quarter due to the strengthening of the yen. Even with this currency fluctuation, the Japanese market continued to represent a dynamic source of luxury demand, with Japanese consumers and Chinese tourists driving substantial sales.
Asia (excluding Japan): The broader Asian market, notably the Chinese consumer segment, played a vital role in LVMH’s results. As travel restrictions eased and international tourism resumed, Chinese tourists contributed significantly to luxury spending, particularly in Europe and Japan. However, weak domestic demand in China for some product categories, especially cognac, moderated growth in the region.
Wines & Spirits Segment: Declining but Resilient
LVMH's Wines & Spirits division faced challenges in 2024, posting an 8% organic revenue decline over the first nine months of the year. This decline reflects the normalization of demand post-Covid, following years of exceptional growth in key categories like champagne and cognac.
Champagne: While demand for champagne declined as part of this normalization, the category’s revenue remained significantly higher than pre-pandemic levels in 2019. LVMH's champagne brands, including Moët & Chandon, Veuve Clicquot, and Dom Pérignon, continue to be highly sought after, driven by their strong reputation and market positioning.
Cognac: The performance of Hennessy cognac was mixed. While weak local demand in China caused a slowdown, the United States offered a brighter outlook. After a sluggish start to the year, Hennessy saw a return to growth in the second quarter of 2024 as the U.S. market recovered, although caution remains among consumers and retailers.
Provence Rosé Wines: The international expansion of Château d’Esclans, a leader in Provence rosé wines, was a bright spot in the Wines & Spirits division. Known for its premium rosé offerings, Château d’Esclans continues to grow its presence in key international markets, meeting increasing global demand for high-quality rosé wines.
Strategic Moves and Partnerships
In addition to its strong portfolio of iconic luxury brands, LVMH continues to make strategic moves to diversify its offerings and capitalize on emerging trends.
SirDavis American Whisky: LVMH launched a new American whisky, SirDavis, through a joint venture with globally recognized entertainer Beyoncé Knowles-Carter. This collaboration marks the group’s entrance into the American whisky market, leveraging both celebrity influence and the growing consumer interest in premium whiskies.
French Bloom Partnership: In 2024, LVMH also announced a strategic partnership with French Bloom, a market leader in premium alcohol-free sparkling wine. As consumer interest in wellness and alcohol-free alternatives continues to rise, this partnership allows LVMH to tap into the expanding non-alcoholic beverage market with a premium offering that aligns with the group’s luxury positioning.