LVMH, the world’s largest luxury conglomerate, reported higher-than-expected sales for the year's final quarter despite being nearly flat year over year.
The company’s revenues were down 2% to €84.7 billion ($88.3 billion) in 2024 compared to a year earlier. This was marginally higher than Visible Alpha's consensus expectations for flat sales. Net profit for the year dipped 17%, driven by the wine and spirits segment, which includes Moët & Chandon and Veuve Clicquot.
“Today, I’m not going to report record revenue, but it was nonetheless a robust year, and I’m rather confident for the year to come,” chairman and CEO Bernard Arnault said during LVMH’s earnings call on Tuesday.
The French conglomerate, home to Christian Dior, Sephora, Bulgari, and Tag Heuer, has had to cope with speed bumps in recent years as luxury spending has lagged.
Some parts of LVMH’s business were more impacted than others—for instance, sales of wine and spirits declined 8% in the third quarter, while perfume and cosmetics were up 5%. Watches and jewelry proved a bright spot, thanks to Tiffany and Bulgari, during the fourth quarter.
“Things are improving,” LVMH’s CFO, Jean-Jacques Guiony, said during the call. Guiony is set to depart from his role on Feb. 1 after two decades to lead the drinks business, Moët Hennessy.
A recovery at last?
Signs of recovery in the luxury sector have been apparent with better-than-expected sales from Richemont and Burberry. Following the Cartier parent’s earnings, LVMH became Europe’s most valuable company, leapfrogging Denmark’s Novo Nordisk.
LVMH’s shares are up 18% since the start of 2025.
Earnings from the French behemoth considered the bellwether of the luxury market underscore the fresh start that 2025 could give the sector.
“In 2025, amid a global environment characterized by wide-ranging geopolitical and economic uncertainty, the Group will focus on growing its market share” across maisons, LVMH said in its earnings report.
It’ll not be without troubles, as shoppers’ sentiment toward luxury is starting to change. A confluence of factors, from quiet luxury creating cheap impostors to a lukewarm revival in tourism spending, has put the sector in flux, according to Bank of America.
China remains a weak spot for luxury companies, which grew to rely on consumer demand to drive sales. Now, the mantle may shift to American buyers with a strong appetite for high-end goods. Arnault said that LVMH has upcoming store openings in Los Angeles and New York.
Other variables could also impact luxury this year, including possible tariffs teased by President Donald Trump (Arnault had a front-row seat at his swearing-in ceremony last week). When asked about tariffs, Arnault said that Trump incentivizes local production in "quite a few states." This could benefit LVMH's booming U.S. market.
For its part, LVMH has been trying to streamline its business. The Bernard Arnault–run company sold the company behind the Off-White brand in September and announced in a joint statement with Stella McCartney on Tuesday that it was selling its stake in the label back to the founder.
In its pursuit of selectiveness, LVMH has invested in Italian ski jacket maker Moncler and inked a lucrative 10-year sponsorship deal with Formula One racing (which CEO Arnault mentioned as he opened his address on the earnings call). It’s also continuing to invest in the turnaround of the jewelry brand Tiffany.
