A sharp slowdown in growth for LVMH in the 3rd quarter of 2023
LVMH records a 9% growth in the 3rd quarter of 2023, with total sales amounting to 19.964 billion euros. Most divisions are showing only single-digit growth, with Wines and Spirits even experiencing a decline of -14%. The only standout is the Selective Retailing activity, which has grown by +26%.
By Cristina D’Agostino11 octobre 2023
LVMH Moët Hennessy Louis Vuitton, a leader in luxury products, announces weaker organic growth of 9%, impacted by the global economic environment, which is slowing down, particularly in China. The Chinese real estate crisis and recent increases in long-term interest rates in the United States continue to cast doubt on the major stock markets.
The Fashion & Leather Goods division, home to iconic brands like Louis Vuitton and Christian Dior, achieved organic growth of 9%, whereas in the 1st quarter of 2023, the division saw an increase of 18% and even 21% in the 2nd quarter of this year. Perfumes & Cosmetics showed growth of 9%, and the Watches & Jewelry branch had very modest growth of 3%.
Only LVMH's Selective Retailing activity showed organic growth of 26% in the 3rd quarter. Sephora is at the heart of this success, expanding its global presence, with particularly strong dynamics in North America, Europe, and the Middle East. Its distribution expansion continues, especially in the United Kingdom, where a second store will open soon after the immense success of its first opening earlier this year.
The Wines & Spirits sector saw a decline of -14% (with sales totalling 1.50 billion euros in the 3rd quarter of 2023) due to a high comparison base with the same period in 2022 (1.89 billion euros in the 3rd quarter of 2022). Hennessy cognac is affected in the United States by the economic environment, the normalization of demand post-Covid, and still high levels of inventory among retailers.
The first nine months of the LVMH Group were marked by highlights such as the first fashion show by the new Men's Creative Director, Pharrell Williams, for Louis Vuitton, on the Pont-Neuf in Paris this summer. The Dior brand unveiled the Dioriviera capsule collection in its summer pop-up boutiques and celebrated its iconic fragrance, Dior J'adore, in an exhibition at the Beaux-Arts de Paris, inaugurated in the presence of Charlize Theron last September.
Despite an uncertain economic and geopolitical context, LVMH remains confident. The group's strategy is based on strengthening the desirability of its brands, the efficiency of its distribution, and the quality of its products. With these sustained efforts, LVMH aims to solidify its position as a leader in the global luxury market for 2023.
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