LVMH ended 2024 on a high note.
The luxury conglomerate reported better-than-expected full-year sales on Tuesday, generating $88.27 billion (84.68 billion euros) in revenue last year. That's a slight bump from where analysts at finance company LSEG predicted the Louis Vuitton owner would land, which was $87.96 billion (84.38 billion euros), CNBC reported . The showing is welcome news for the luxury industry at large, which struggled against a global slowdown last year, as LVMH is a bellwether for the high-end sector.
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The brand's 2024 earnings show an organic growth of 1 percent over 2023, according to LVMH, which also owns companies such as Moët & Chandon, Dior, and TAG Heuer . Sales also rose past expectations in the fourth quarter to December, CNBC reported. That jump was aided by costumers in the U.S., Europe, and Japan.
LVMH noted continued weakness in Asia overall, though, where people are pulling back on spending—especially in China , a massive market for the luxury sector. The country's consumers have been putting away their purses due in part to a tough real-estate market and weakened banks.
Those struggles in China contributed to sales falling in LVMH's fashion and leather goods department for the first time since the pandemic this past October. And though the luxury behemoth continued to stumble in that division, as well as the wine and spirits section, it saw success within its selective retailing category, which includes brands such as Sephora.
"In 2024, amid an uncertain environment, LVMH showed strong resilience," LVMH chairman and CEO Bernard Arnault , said in a statement. "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."
One way LVMH, as well as other luxury brands, are shaking things up is by shining a light on their more affordable offerings to bring middle-class shoppers back into the mix. The items in question includes those priced under $500, such as Louis Vuitton's $360 card holder.
We'll have to see if that strategy, among others, pays off for the luxury sector in 2025.
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