LVMH Moët Hennessy Louis Vuitton reported a 3% decline in revenues for the third quarter, missing market expectations amid weakening Chinese demand and moderating growth in Japan.
The luxury conglomerate reported total revenues of €19.1 billion, attributing the declines to a stronger Japanese yen.
However, LVMH highlighted resilience in its core markets, with Europe and the U.S. showing slight growth.
“In an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in distribution and agile organisation,” the company stated.
Its Wine & Spirits division posted the largest decline of 11%, with Fashion & Leather Goods and Watches & Jewelry also slipping. LVMH’s total revenue so far in 2024 is EU€6.8 billion.
Conversely, Perfumes & Cosmetics recorded a 5% revenue increase following successful launches from Dior and Givenchy. Selective Retailing, which includes Sephora, also posted 6% organic growth, gaining market share in Europe, North America, and the Middle East.
The report also noted several of LVMH’s product lines have suffered from lower Chinese demand this year.
Hennessy cognac “was held back by weak local demand in the Chinese market”, according to the report. Chief Financial Officer Jean-Jacques Guiony also flagged weak consumer confidence in China on an earnings call, which had returned to “the all-time low reached during covid”.
LVMH began the year strong, with revenues increasing by 2% in its first half, but its revenue in the first 9 months of 2024 is now 2% below its earnings in 2023’s equivalent period.
The company also promoted its major collaborations in the earnings report, having struck a ten-year global partnership deal between its Watches division and Formula One earlier this month.