LVMH has reported modest revenue growth amid “a challenging economic and geopolitical environment”.
The luxury group’s revenue edged up 1 per cent to €84.7 billion (US$88.3 billion) in FY24, with fourth-quarter organic revenue growth also at 1 per cent.
Management said the company faced a challenging economic and geopolitical environment, as well as a high basis of comparison following several years of exceptional post-Covid growth.
By region, Europe and the US posted growth on a constant consolidation scope and currency basis, while Japan saw double-digit revenue growth.
The group recorded solid performance in the fashion & leather goods and fragrances segments. Sephora achieved “remarkable performance”, which helped consolidate its position as a leader in beauty retail.
On the bottom line, profit from recurring operations was down 14 per cent to €19.6 billion. Free cash flow grew 29 per cent to about €10 billion.
Chairman and CEO Bernard Arnault said the group showed “strong resilience” in an uncertain environment” last year.
“This capacity to weather the storm in highly turbulent times – already illustrated on many occasions throughout our group’s history – is yet another testament to the strength and relevance of our strategy,” he continued.
In November, the group announced several leadership changes across its executive board, with new appointments set to take effect early this year.