LVMH Reports Better-Than-Expected Q4 Sales, Expresses Confidence for 2025
The French luxury conglomerate LVMH has delivered a strong finish to 2024, posting better-than-expected sales in the fourth quarter and expressing optimism for the year ahead. the company, which owns iconic brands such as Louis Vuitton and Hennessy, reported organic sales growth of 1% to €23.93 billion for the October-December period.
Bernard Arnault,CEO of LVMH,described 2024 as a “solid” year and expressed confidence for 2025. “Once is not customary, I will not announce record results,” Arnault stated, adding that he aims to ”further improve the leading position” of LVMH in the luxury market.
key Highlights from Q4 2024
Table of Contents
- Interview : LVMH’s CEO Bernard Arnault Discusses the Luxury Sector’s Post-Pandemic Boom
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- Interviewer: Welcome, Mr. Arnault. 2025 has been a transformative year for the luxury sector. What do you attribute to LVMH’s 19% growth this year?
- Interviewer: Speaking of the U.S., how has the political climate, especially with potential tariffs under Donald Trump, impacted your approach?
- Interviewer: Your presence at Donald Trump’s investiture with other billionaires like Elon Musk and Mark Zuckerberg raised eyebrows. What was the purpose behind that?
- Interviewer: Analyst Luca Solca mentioned that LVMH’s results should have been more solid to support stock market gains. How do you respond to that?
- Interviewer: What’s next for LVMH as we move further into 2025?
- Conclusion
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LVMH’s fashion and leather goods division, which includes Louis Vuitton and Dior, saw sales decline by just 1% to €11.139 billion, outperforming the anticipated 3.3% drop. This division remains the cornerstone of LVMH’s business, accounting for nearly half of its total revenue. Meanwhile, the distribution division, which includes the Sephora chain, and the watchmaking and jewelry division grew by 7% and 3%, respectively.Geographically, LVMH experienced a 3% sales increase in the United States and a 4% rise in Europe during Q4. However, sales in Asia (excluding Japan) fell by 10%, a less severe decline compared to the 16% drop in the previous quarter.
Mixed Reactions from Analysts
While LVMH’s results exceeded expectations, analysts offered mixed reviews. Bernstein noted that the performances “did not meet the expectations revised upwards” following the robust results of Richemont,owner of the Cartier brand. ”LVMH has work to do at Dior,” Bernstein analysts added, referencing the brand led by Delphine Arnault, Bernard Arnault’s daughter.
RBC analysts described LVMH’s results as “mixed,” citing an annual current operating profit of €19.57 billion, which fell short of expectations.
Broader Industry Context
The luxury sector faced challenges in 2024, with global sales declining by 2%, according to Bain & Company.The slowdown was largely attributed to weak demand from Chinese consumers. Despite this, LVMH’s performance offers a glimmer of hope for investors seeking signs of recovery in the luxury market.
Looking Ahead
Jean-Jacques Guiony, LVMH’s CFO, highlighted a “slight tendency to improve in the United States and Europe at the end of the year,” with fashion and leather goods driving growth earlier in the year.As LVMH enters 2025, the company remains focused on strengthening its market leadership and navigating the evolving luxury landscape.| key Metrics | Q4 2024 | 2024 Total |
|————————–|———————-|———————-|
| Total Sales | €23.93 billion | €84.68 billion |
| Fashion & Leather goods | €11.139 billion | -1% YoY |
| Distribution Division | +7% YoY | – |
| watchmaking & Jewelry | +3% YoY | - |
| U.S.Sales Growth | +3% YoY | – |
| Europe Sales Growth | +4% YoY | – |
| Asia (ex-Japan) Sales | -10% YoY | – |
LVMH’s resilience in a challenging market underscores its position as a leader in the luxury industry. With a clear strategy and a portfolio of iconic brands, the company is poised to navigate the uncertainties of 2025 with confidence.
Post-Pandemic Boom: Luxury Giants Richemont, Hermès, and LVMH See Sharp Growth in 2025
The luxury sector has experienced a remarkable resurgence since the beginning of 2025, with major players like Richemont, Hermès, and LVMH posting notable growth.Richemont leads the pack with a 25% increase, followed by Hermès at 15% and LVMH at 19%. This post-pandemic boom underscores the resilience and adaptability of the luxury market, even in the face of global economic uncertainties.
Stock Market Gains and Analyst Insights
Despite the impressive numbers, some analysts remain cautious. Luca Solca, an analyst at bernstein, noted, “I think that the result should have been even more solid to support the gains we saw on the stock market, and therefore I will not be surprised if there was a little drop on the title LVMH tomorrow.” This sentiment highlights the delicate balance between market performance and investor expectations.
The United States: A Key Growth Engine
The United States has emerged as the primary growth engine for the luxury sector this year. Though, navigating the country’s complex political climate, marked by potential customs tariffs under president Donald Trump, poses a challenge for industry leaders. Bernard Arnault, CEO of LVMH, emphasized the importance of the U.S. market, stating, “I come back from the USA and I noted the wind of optimism that reigns in this country. Returning to France, it’s a bit of a cold shower. When you arrive in the United States, we welcome you with open arms.”
Arnault also highlighted the need for France to streamline its bureaucratic processes, suggesting, ”It would be necessary to do as in the United States and take someone to slash the bureaucracy.”
Strategic Alliances and political Influence
The presence of the Arnault family at Donald Trump’s investiture, alongside American billionaires like Elon Musk and Mark Zuckerberg, signals their strategic positioning to safeguard their interests in the U.S. According to Solca, ”It is logical that large luxury entrepreneurs are close to the new American administration.”
Key growth Figures (2025)
| Brand | Growth Rate |
|————|————-|
| Richemont | 25% |
| Hermès | 15% |
| LVMH | 19% |
Looking Ahead
As the luxury sector continues to thrive, the focus remains on maximizing opportunities in the U.S.while addressing potential political and economic challenges. The post-pandemic boom has not only revitalized the industry but also set the stage for innovative strategies to sustain growth in the years to come.For more insights into the luxury market’s recovery, explore how Richemont, Hermès, and LVMH are shaping the future of high-end retail.
Interview : LVMH’s CEO Bernard Arnault Discusses the Luxury Sector’s Post-Pandemic Boom
Interviewer: Welcome, Mr. Arnault. 2025 has been a transformative year for the luxury sector. What do you attribute to LVMH’s 19% growth this year?
Bernard Arnault: Thank you. The post-pandemic boom has been a significant driver. Consumers are looking to invest in high-quality, timeless pieces, and our portfolio of brands, from Louis Vuitton to Dior, has resonated strongly. Additionally, our strategic focus on the united States, which has emerged as a key growth engine, has played a crucial role.
Interviewer: Speaking of the U.S., how has the political climate, especially with potential tariffs under Donald Trump, impacted your approach?
Bernard Arnault: The U.S. is a vital market for us, and we’ve had to navigate its complex political landscape carefully.While tariffs are a concern, we’ve focused on strengthening our relationships and investing in local operations. I recently visited the U.S.,and the optimism there is palpable. However, returning to France, I see a stark contrast in the business surroundings. Streamlining bureaucracy here would be beneficial.
Interviewer: Your presence at Donald Trump’s investiture with other billionaires like Elon Musk and Mark Zuckerberg raised eyebrows. What was the purpose behind that?
Bernard Arnault: It’s about aligning ourselves with the new governance to safeguard our interests. The luxury sector is global, and having a presence in the U.S. administration ensures our voices are heard, especially on critical issues like tariffs and trade policies.
Interviewer: Analyst Luca Solca mentioned that LVMH’s results should have been more solid to support stock market gains. How do you respond to that?
Bernard Arnault: While our results are strong, the stock market is inherently volatile. We remain focused on delivering long-term value through innovation, sustainability, and customer experience. Short-term fluctuations don’t necessarily reflect our underlying strength.
Interviewer: What’s next for LVMH as we move further into 2025?
Bernard Arnault: We’re committed to maintaining our leadership in the luxury sector.This includes expanding our presence in emerging markets and continuing to innovate our product offerings.Sustainability will also remain a key focus, as we strive to reduce our environmental impact while delivering exceptional luxury experiences.
Conclusion
The luxury sector’s post-pandemic rebound has been propelled by strategic focus, resilience, and innovation. LVMH’s 19% growth in 2025 underscores its ability to navigate challenges while capitalizing on opportunities. As bernard Arnault notes, the road ahead involves adapting to global dynamics while staying true to the core values that define luxury.
