LVMH’s Impressive Revenue Growth
For the fiscal year 2024, LVMH, the well-known French luxury conglomerate, took substantial strides in its fragrance brands along with Sephora. The company announced an impressive total revenue of €84.7 billion across its various sectors, marking a 1% organic growth compared to the previous year. This achievement is particularly notable given the challenges presented by the current economic and geopolitical climates.
The company experienced notable growth in both European and U.S. markets, with Japan standing out due to its remarkable double-digit revenue increase. However, it was not all good news; profit from recurring operations declined by 14%, largely due to hefty expenditures related to the Olympic Games sponsorship and the restoration efforts for Paris’s Notre-Dame Cathedral. Bernard Arnault, the Chairman and CEO, elaborated on these factors, emphasizing the impact of such significant investments.
Perfumes & Cosmetics Division Performance
In the Perfumes & Cosmetics division, organic revenue increased by 4% in 2024, thanks to the enduring popularity of its flagship products and a robust innovation strategy, supported by a selective distribution approach. During the fourth quarter, this segment reported sales of €2.3 million, which marked a 2% rise year-on-year. Despite this growth, profits from recurring operations in this area also took a hit, falling by 6%, again largely influenced by costs associated with Olympic sponsorships.
Among the highlights in the beauty division, Parfums Christian Dior showcased its prowess, with its men’s Sauvage fragrance still maintaining strong momentum as the best-selling fragrance worldwide. The launch of a new Miss Dior Parfum edition proved to be a significant success, complementing the solid performance of color cosmetics, notably the Forever foundation line.
Sephora’s Growth and Future Outlook
Meanwhile, LVMH’s Guerlain and Parfums Givenchy brands shone brightly in the fragrance sector throughout 2024. Additionally, within the Selective Retailing segment, Sephora achieved remarkable double-digit growth in both revenue and profit, expanding its market share across diverse regions. Arnault reminisced about Sephora’s growth trajectory since it was acquired in 1998, when it generated just around €100 million in revenue. Today, that figure has surged tenfold.
In a broader reflection on LVMH’s performance in 2024, Arnault acknowledged the prevailing uncertainty and volatility in the industry. Yet, he remains optimistic as the company heads into 2025, underscoring the critical importance of effective cost management and a steadfast commitment to design aesthetics. He affirmed LVMH’s dedication to creativity, noting that their agile and talented teams would be pivotal in driving future success and solidifying their position as leaders in the luxury market.
Source: Cosmeticsdesign-europe.com