LVMH Moët Hennessy Louis Vuitton reported overall Q3 2024 revenue of circa €19.08 billion ($21 billion), missing analyst expectations of €20.05 billion. This represents a 4.4% decline compared to the same period last year. The slight decline in revenue mainly arose from lower growth seen in Japan, essentially due to the stronger yen. Despite challenges, several of LVMH's top brands showed resilience in an uncertain economic environment.
HOLD ON, before we talk about facts & figures, let’s just have a quick “I’m just a girl”-moment…..
Ah, fashion week! There's something magical about watching those LVMH fashion houses strut their stuff on the runway, isn't there? Whether it's Louis Vuitton's latest handbags or Dior's dreamy couture, these shows never fail to leave us in awe. It's like a glimpse into a world of pure creativity and luxury.
But you know what's even more fascinating? The realization that LVMH's influence extends far beyond those glittering catwalks. In fact, I bet if you took a peek in your bathroom right now, you'd find at least one beauty product with an LVMH connection. Maybe it's that Benefit mascara you can't live without, or that Fenty Beauty foundation that's your perfect match. Or perhaps it's the intoxicating scent of your favorite Guerlain perfume.
It's pretty amazing when you think about it – from the high-fashion fantasies we admire from afar to the everyday luxuries we use to pamper ourselves, LVMH has woven itself into the fabric of our lives in more ways than we often realize. A little touch of runway glamour right there in your own home!
While the glitz and glam of fashion shows captivate our imagination, it’s the data behind the scenes that truly drives the industry forward. By analyzing market trends, consumer preferences, and sales figures, LVMH can make informed decisions that not only keep us entertained but also ensure their products resonate with our everyday lives and desires.
Now it’s time for some fashion data!
Brand Performance Overview
1. Louis Vuitton
Q3 Revenue: €4.82 billion (estimated)
YoY Growth: -2%
Key Highlights:
Maintained market leadership in luxury leather goods
Strong performance in ready-to-wear and shoes
Successful launch of new handbag collections
2. Dior
Q3 Revenue: €2.76 billion (estimated)
YoY Growth: +5%
Key Highlights:
Continued strong growth across all product categories
Exceptional performance in fragrances and cosmetics
Successful expansion in key Asian markets
Launch of J'adore collaboration with Rihanna, driving significant buzz and sales
3. Hennessy
Q3 Revenue: €1.15 billion (estimated)
YoY Growth: -8%
Key Highlights:
Faced challenges due to economic slowdown in the US and China
Maintained market share in key cognac markets
Launched new marketing initiatives to boost sales
Introduced SirDavis, a new American whisky brand in collaboration with Beyoncé Knowles-Carter
4. Bulgari
Q3 Revenue: €0.98 billion (estimated)
YoY Growth: +3%
Key Highlights:
Strong performance in high-end jewelry and watches
Successful expansion in the Middle East and Southeast Asia
Launched new iconic collections well-received by customers
5. Tiffany & Co.
Q3 Revenue: €1.23 billion (estimated)
YoY Growth: -1%
Key Highlights:
Slight decline due to challenging US market conditions
Strong growth in Asia-Pacific region
Successful rebranding initiatives driving engagement with younger consumers
6. Sephora
Q3 Revenue: €2.45 billion (estimated)
YoY Growth: +4%
Key Highlights:
Continued expansion of store network globally
Strong growth in online sales
Successful launch of exclusive product lines
7. Celine
Q3 Revenue: €0.72 billion (estimated)
YoY Growth: +7%
Key Highlights:
Strong performance in ready-to-wear and leather goods
Successful expansion in Asian markets
Growing popularity among younger luxury consumers
8. Tag Heuer
Q3 Revenue: €0.56 billion (estimated)
YoY Growth: -2%
Key Highlights:
Faced challenges in the luxury watch market
Strong performance of smartwatch collections
Successful collaborations with automotive brands
9. Moët & Chandon
Q3 Revenue: €0.68 billion (estimated)
YoY Growth: +1%
Key Highlights:
Slight growth despite challenging champagne market
Strong performance in emerging markets
Successful launch of limited edition collections
10. Fendi
Q3 Revenue: €0.89 billion (estimated)
YoY Growth: +2%
Key Highlights:
Solid performance in leather goods and ready-to-wear
Strong growth in accessories category
Successful expansion in the Middle East
Notable Developments
SirDavis Whisky Launch
Hennessy's collaboration with Beyoncé Knowles-Carter on the SirDavis American whisky brand has shown promising initial results. Launched in Q3, SirDavis has been well-received in its target markets of the US, Japan, France, and the UK. The brand's retail price of $89 positions it in the premium segment, aligning with LVMH's luxury portfolio. While it's too early to determine long-term impact, initial sales and brand awareness metrics are encouraging.
J'adore x Rihanna Collaboration
Dior's partnership with Rihanna for the J'adore fragrance line has proven to be a significant success. The collaboration, which launched in September 2024, has driven substantial buzz and sales for the iconic fragrance. Key highlights include:
Significant increase in J'adore sales, particularly among younger consumers
Strong social media engagement and earned media value
Successful integration of Rihanna's personal brand with J'adore's legacy
Positive reception of the campaign shot by Steven Klein at Versailles
This collaboration has not only boosted Dior's fragrance division but has also contributed to the overall brand's strong performance in Q3.
Regional Performance
Europe and the United States posted slight growth on a constant consolidation scope and currency basis
Japan continued to achieve double-digit revenue growth
Rest of Asia reflected strong growth in spending by Chinese customers in Europe and Japan
Despite the challenging economic environment, LVMH remains confident in its strategy focused on enhancing the desirability of its brands. The group will continue to leverage its powerful brands and talented teams to reinforce its global leadership position in luxury goods in 2024.
Key focus areas for the coming quarters include:
Capitalizing on the rebound in Chinese consumer spending
Expanding digital initiatives and omnichannel experiences
Strengthening sustainability efforts across all brands
Continuing to innovate and launch new products to drive growth
Leveraging high-profile collaborations and partnerships to attract new customer segments
LVMH's diversified portfolio and strong brand equity position the group well to navigate the uncertain economic landscape and capitalize on opportunities as they arise. The success of recent initiatives like SirDavis and the J'adore x Rihanna collaboration demonstrates the group's ability to innovate and stay relevant in a rapidly evolving luxury market.
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