Despite adverse conditions, the French luxury goods group Moët Hennessy Louis Vuitton (LVMH) was able to set new sales and earnings records in the 2023 financial year. The company said on Thursday evening that business was going above average in Europe and Asia.
Last year, group sales amounted to 86.2 billion euros, which corresponded to an increase of nine percent compared to 2022. On an organic basis – i.e. adjusted for currency effects and changes in the group portfolio – revenue grew by 13 percent. In the fourth quarter, the group achieved an organic sales increase of ten percent to 23.9 billion euros.
The most dynamic development was the retail division, which includes concepts such as DFS, Sephora and Le Bon Marché. Not least thanks to the normalization of international travel after the Covid-19 pandemic, their sales rose by 20 percent (organically +25 percent) to 17.9 billion euros.
Net profit increases by eight percent
The fashion and leather goods segment also grew strongly, increasing by nine percent (organically +14 percent) to 42.2 billion euros. According to the company, this was due not least to the “outstanding results” of the brands Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe, Rimowa and Marc Jacobs.
Revenue from perfume and cosmetics rose by seven percent (organic +11 percent) to 8.3 billion euros, while the watch and jewelry sector increased by three percent (organic +7 percent) to 10.9 billion euros. The only downward trend was in the wine and spirits division, where sales slipped by seven percent (organic -4 percent) to 6.6 billion euros.
The group was also able to record solid growth in earnings. Thanks to a largely unchanged margin, the operating profit adjusted for special effects exceeded the previous year’s level by eight percent and reached 22.8 billion euros. The net profit attributable to shareholders also rose by eight percent to 15.2 billion euros.