Sunday, March 3, 2024

Luxury leader LVMH boasted record profits despite the geopolitical context

The French luxury giant LVMH Last year, it achieved record revenue with 15,174 million euros, 8% more than in 2022, with strong profits and an increase in turnover in all businesses, except wine and spirits. spirit.

The group announced this Thursday in a statement that the current operating result grew by 8% to 22,802 million euros, with a “stable” operating margin considering that global sales increased by 9% to 86,153 million.

The business of fashion and leather goods contributed almost half of this turnover, specifically 42,169 million, with an increase of 9% (14% in the same term), mainly thanks to the good performance of brands such as Louis Vuitton, Christian Dior, Céline, Fendi, Loro Piana, Loewe and Marc Jacobs.

All these brands increased their market shares and reached record levels of sales and results, highlighted LVMH, which is the second European company with the highest stock market valuation.

In perfumes and cosmetics, the success of Dior’s Sauvage shows a business whose volume increased by 7% to 8,271 million euros. In watches and jewelry, the pull comes mainly from Tiffany, Bulgari and TAG Heuer, with 10,902 million euros in revenue, 3% more.

In selective distribution, the increase of 20% to 17,885 million euros was largely driven by the Sephora chain of beauty products stores.

The other side of the coin is wines and spirits, with a decrease in sales of 7% (4% in similar terms) with 6,602 million euros. The company attributed this to the fact that the 2022 comparative base is very high and also to the inventories accumulated in the past.

The number one in luxury, which at the end of 2023 will have 213,000 employees, of which almost 40,000 in France, will propose at the meeting to make on April 18 the distribution of a dividend of 13 euros per share, of which they are 5.5 . paid as an advance in December.

The company is confident that in 2024, despite “an uncertain geopolitical and macroeconomic context”, it will continue to grow thanks to what its products provide in terms of diversity for their “quality” and “creativity”, as well as for the “professionalism” of its management team to gain market share.

World Nation News Desk
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