Luxury conglomerate LVMH, which comprises 75 of the world’s most prestigious brands, saw its sales rise in the fourth quarter. Turnover rose 9 percent to 24 billion euros, in what is a clear sign of robustness in the luxury segment.
LVMH is controlled by Europe’s richest man Bernard Arnault, and has prestigious brands such as Louis Vuitton, Tiffany & Co, Bulgari and Moët Hennessy in its portfolio.
For the whole of 2023, the turnover was 86.2 billion euros, up 13 percent from the previous year. However, the result of 30.3 euros per share was lower than expected in advance.
CFO Jean-Jacques Guiony highlights cost-controlling measures as essential for the good result. He rules out price increases for goods through 2024.
In the wake of the pandemic, the luxury segment strengthened strongly, but increased interest rates and strong inflation caused many to postpone the purchase of the expensive bags and wallets.
This consequently gave a crack in the stock. From its peak in the summer of 2023, the stock has fallen 20 percent, having doubled in value since the outbreak of the pandemic.
On Thursday, the share rose 4.7 percent on the New York Stock Exchange.
– We enter 2024 with renewed confidence, built by our sought-after brands. This will be a promising year for us, says Arnault.
It recently became clear that two of his children will be nominated to the board of LVMH, where they already have two older siblings. The Arnault family controls 48 percent of LVMH.
2024-01-25 19:45:11
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