Investing.com -- LVMH Moët Hennessy Louis Vuitton reported a slight decline in revenue for the third quarter of 2024, reflecting challenges in key markets and shifting consumer dynamics.
The luxury conglomerate recorded total revenue of €19.1 billion for the quarter, representing a 3% drop on an organic basis compared to the same period last year.
According to LVMH, this decline was largely driven by weaker performance in Japan, which was impacted by the stronger yen.
Despite the setback, the company emphasized resilience in its core markets, noting that Europe and the U.S. posted slight growth.
Chinese consumer spending in Europe and Japan was also said to have contributed positively.
The Wines & Spirits division experienced the steepest decline, with revenues falling 8% in the first nine months of 2024. Champagne sales normalized after post-Covid demand spikes, and Hennessy cognac was held back by sluggish demand in China, though U.S. sales showed signs of recovery.
Fashion & Leather Goods, the group's largest segment, saw a 1% drop in organic revenue over the first nine months, though LVMH highlighted strong brand visibility with Louis Vuitton and Christian Dior during major events like the 2024 Olympic Games.
Meanwhile, Perfumes & Cosmetics showed a 5% organic revenue increase, driven by the success of new product launches from Dior and Givenchy.
Selective Retailing, which includes Sephora, achieved 6% organic growth, gaining market share in Europe, North America, and the Middle East.
In its outlook, LVMH expressed confidence despite economic uncertainties.
"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 organization," the company stated.