Editor’s Note
LVMH, the world’s leading luxury group, reported a slight year-on-year revenue decline of 1.9% for Q1 2024. This result underscores the ongoing challenges in the global luxury market, even for its most prominent player.
LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods company, failed to rebound in its first-quarter performance.
On the 14th (local time), LVMH announced its first-quarter results, reporting revenue of 20.311 billion euros (approximately 33 trillion Korean won). This represents a 1.9% decrease compared to the 20.694 billion euros (approximately 33.4 trillion Korean won) recorded in the first quarter of last year.
By category, revenue was as follows: △Wines & Spirits: 1.305 billion euros (approx. 2.1 trillion KRW) △Fashion & Leather Goods: 10.108 billion euros (approx. 16.3 trillion KRW) △Perfumes & Cosmetics: 2.178 billion euros (approx. 3.5 trillion KRW) △Watches & Jewelry: 2.482 billion euros (approx. 4 trillion KRW) △Selective Retailing: 4.189 billion euros (approx. 6.8 trillion KRW).
With the exception of the Watches & Jewelry segment, which improved by 1% year-on-year, performance in most categories was weak. The Fashion & Leather Goods sector saw the largest decline in revenue, decreasing by 4% compared to the previous year.
LVMH took the position that it performed well under the circumstances. In its earnings materials, the company assessed,
The outlook for this year is negative. This is because if U.S. President Donald Trump’s tariff policies are applied to luxury goods, demand is expected to decrease even further. Previously, President Trump decided on the 2nd to impose a 10% baseline tariff (universal tariff) on all countries worldwide, and on the 9th, he decided on a 90-day grace period. Cécile Cabannis, CFO of LVMH, said,