Lvmh limits decline to 2% and closes nine months with over 60 billion in revenue

It is the largest luxury group in the world and holds the world's most famous luxury brand, Louis Vuitton (above, the Voyager collection fashion show), which is also number one in terms of revenues: it is therefore natural that Lvmh's first nine months results were the most awaited and 'pre-announced' as early as Monday.

A spasmodic wait also fuelled by two other factors: China's slowdown and the various stimulus packages put on the table by Beijing, and the uncertainty enveloping the high-end, not only because of geopolitical factors but because of the changes taking place in the consumption habits of the high-end, on whose exegesis many are exercising themselves, perhaps too many, in an atmosphere that resembles panic and that has led, in recent weeks, to whirlwinds and replacements of stylists and managers and to a renewed rush to pharaonic-like events that seem made to stun, rather than to solve problems or dissolve doubts.

Total revenue dropped by 2% from EUR 62.205bn in January-September 2023 to EUR 60.753bn. The biggest decline was in Wine & Spirits (-11%), followed by Watches (-5%), while Perfumes & Cosmetics (+3%) was positive. The figure would be stable at constant perimeter and exchange rates, but down 2% when considering changes in perimeter and at current exchange rates. Europe and the United States recorded slight growth at constant perimeter and currency, while Japan continued to record double-digit sales growth; the rest of Asia reflected in particular the strong growth in spending by Chinese customers in Europe and Japan. "In the third quarter," said the group's scarce note, "the slight decline in revenue was mainly due to lower growth in Japan, mainly as a result of the strengthening yen. In an uncertain economic and geopolitical environment, the French giant remains confident and will maintain a strategy focused on continuously improving the desirability of its brands by leveraging the authenticity and quality of its products, distribution excellence and organisational agility'.

Champagne sales declined reflecting the ongoing normalisation of demand post-Covid but remained significantly higher than in 2019, the note said: champagne revenues fell by 6% to EUR 2,143 million in the nine months and cognac and spirits revenues fell by 11% to EUR 2,051 million. Hennessy cognac was held back by weak local demand in the Chinese market, while the US saw a return to growth in the second quarter, in a market that remained cautious.

It's hard to remember two weeks more 'frantic', as the Americans would say, for the Lvmh group and its 75 maisons, numbering over 6,000 shops worldwide, all potential 'antennas' for purchase changes. The group has announced changes at the top stylistic summits of Celine, with the departure of Hedi Slimane, who many believe will go to Chanel, and of Fendi, where Kim Jones has left the creative direction of the women's part (keeping that of the men's part of Dior, another top maison of Lvmh). A replacement, Michael Rider, has already been chosen for Celine, while developments are awaited at Fendi (and Dior), perhaps with movements within the group. Among the candidates to be "promoted" to one of the most important maisons is JW Anderson, who in ten years has exponentially increased the revenues and fame of Loewe, another brand in the LVMH portfolio. Then there was the sale of Off White, the brand founded by the late Virgil Abloh, who was also creative director of the Vuitton man, and the almost simultaneous entry into the capital of the Moncler group. Lvmh also formalised a sponsorship with Formula One and the purchase of Paris Match magazine, perhaps signalling a renewed interest in magazine publishing.