Shares of luxury goods giant Louis Vuitton Moët Hennessy (MC.FR) lost nearly 7% early in the session after financial data for the final quarter of 2024 came in worse than expected. Importantly, however, there are also positive surprises in the report itself. The fashion and leather goods sector booked a decline in revenue, albeit of a lower magnitude than expected. The watch and jewelry division was also a positive surprise, where results were driven by good sales of Tiffany.
Selected company results for Q4:
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Create account Try a demo Download mobile app Download mobile app- Organic revenue +1%, expected -1.04%
- Fashion and leather goods -1%, expected -2.82%
- Wine and spirits -8%, forecast -6.94%
- Perfumes and cosmetics +2%, forecast +3.51%
- Watches and jewellery +3%, -2.82% expected
- Organic revenue in the United States +3%, estimated +3.73%
- Organic revenue in Asia excluding Japan -10%, estimated -12.1%
- Organic revenue in Japan +8%, estimated +14.7%
- Organic revenue in Europe +4%, expected +3.37%
- Revenue €23.93 billion vs. €23.95 billion y/y, expected €23.43 billion
Selected company results for the full year:
- Net profit €12.55 billion, -17% y/y, expected €13.38 billion
- Revenue €84.68 billion, -1.7% y/y, expected €84.38 billion
Summary:
Fashion and leather goods results fell short of elevated expectations following a recent positive surprise in the results of rival Richemont. LVMH's update raised concerns that the industry's recovery from last year's slump may be slow and uneven. However, the results themselves also include positive elements, such as higher sales of jewelry and watches. Leather goods and broad fashion sales themselves were not overly bad either. Sam Arnault, LVMH's chairman, sounded optimistic during a press conference after the results, saying that 2025 has started relatively well for the company.
The company's shares are losing 7% today, negating ¼ of the scale of the increases we've seen since last November. Source: xStation 5
