LVMH shares dropped 4.98% in Frankfurt trading today after the luxury giant’s modest sales growth disappointed investors who had anticipated stronger results following recent outperformance by industry rivals. Competitors like Richemont and Burberry have recently posted better-than-expected results. The world’s largest luxury group posted fourth-quarter revenue growth of 1% to 23.9 billion euros ($25 billion), while full-year profits declined sharply. Net income fell 17% to 12.3 billion euros ($12.8 billion) in 2024, with operating profit down 14% to 19.6 billion euros ($20.4 billion). LVMH’s core fashion and leather goods division, home to Louis Vuitton and Christian Dior brands, saw sales decline 1% in the quarter. Wines and spirits performed worse, falling 8%, though watches and jewelry provided a bright spot with 2% growth. China remained a significant challenge, with luxury market sales plunging 18% to 20% in 2024, according to Bain. LVMH’s Asia-Pacific revenue outside Japan tumbled 10% in the fourth quarter and 11% for the year. CEO Bernard Arnault struck an optimistic tone about 2025, particularly regarding the U.S. market, where he recently attended President Trump’s inauguration. The U.S. now accounts for approximately 25% of LVMH’s revenue. “There’s a wave of optimism in the U.S.,” Arnault said at the results presentation, contrasting it with conditions in his native France. Louis Vuitton has seen “double-digit growth” in early 2025, though analysts cautioned that this performance should be “taken carefully” given a recent high-profile campaign featuring artist Takashi Murakami and actress Zendaya.
