Demand for luxury declining? LVMH half-year net profit drops 14%

LVMH Moët Hennessy Louis Vuitton recorded revenue of €41.7bn in the first half of 2024, despite a geopolitical and economic environment that remained uncertain.

“Europe and the United States achieved growth on a constant consolidation scope and currency basis; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan. In the second quarter, organic revenue growth was 1%,” an LVMH statement said.

The company further noted that profit from recurring operations for the first half of 2024 came to €10.7bn, equating to an operating margin of 25.6%, significantly exceeding pre-Covid levels.

“Exchange rate fluctuations had a substantial negative impact on the half-year period. The Group share of net profit amounted to €7.3bn,” LVMH said.

Bernard Arnault, Chairman and CEO of LVMH, commented: “The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty. Driven as ever by our dual focus on desirability and responsibility, we have continued to work towards achieving the targets set out in our environmental and social action programs. In a year marked by our partnership with the Paris 2024 Olympic and Paralympic Games, we are honoured to share our creativity, excellent craftsmanship and deep commitment to society to make this event a resounding success and an opportunity for France to shine on the world stage.

“While remaining vigilant in the current context, the Group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”

2024 Outlook

LVMH said that in an uncertain geopolitical and economic environment, the group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands.

“Our strategy of focusing on the highest quality across all of our activities, combined with the energy and unparalleled creativity of our teams, will enable us to reinforce the LVMH Group’s global leadership position in luxury goods once again in 2024.”

An interim dividend of €5.50 will be paid on Wednesday, 4 December, 2024.