Oh, darling, clear your schedule and grab your oversized sunglasses because we need to gossip about the latest LVMH numbers! On October 15, 2024, the undisputed heavyweight of chic, LVMH Moët Hennessy Louis Vuitton, published its financial results across the globe, announcing a massive €60.753 billion in revenue for the first nine months of the year—a neat 2% reported decline from 2023 simply because the wild post-pandemic shopping binge finally matured into a disciplined, sober routine.
Anyone screaming that the luxury bubble has burst is frankly out of their mind. Wake up! Organic growth for those nine months was precisely flat at zero percent. Zilch. Nada. The empire is not collapsing; it is just catching its breath.
The Breakdown of the Glamour Machine
Let us look at the receipts, shall we? I bet your favorite celebrities are still hoarding every single one of these items.
| Division | 9M 2024 (€M) | Reported YoY | Organic YoY |
|---|---|---|---|
| Fashion & Leather Goods | 29,922 | -3% | -1% |
| Selective Retailing | 12,559 | +6% | +6% |
| Perfumes & Cosmetics | 6,148 | +5% | +4% |
| Watches & Jewelry | 7,536 | -5% | -3% |
| Wines & Spirits | 4,193 | -11% | -8% |
| Total Revenue | 60,753 | -2% | 0% |
Blame the Yen and the Jetsetters
Currency markets played a delightfully chaotic game over the summer. Between July and August 2024, the Japanese Yen whipped from roughly 161 JPY/USD down to about 142 JPY/USD right after the Bank of Japan raised benchmark rates on July 31. That completely wrecked the arbitrage! Suddenly, flying to Tokyo to buy a trunkload of goodies was only marginally cheaper than buying it in Shanghai. Shoppers simply stayed home.
Smart executives adjusted accordingly. They tightened inventory velocity in places like Cognac and Épernay to keep Hennessy and Moët & Chandon bottles from gathering dust on distributor shelves. Sensible! Very demure.
VIPs Only, Please
If you thought ordinary mortals were dictating the market, you clearly do not know how high-end retail operates. LVMH is leaning heavily into exclusive private salons at Plaza 66 in Shanghai and Avenue Montaigne in Paris. They want the top-tier VICs sipping champagne behind closed doors. They are also cracking down on gray-market daigou resellers to keep distribution squeaky clean.
- Q3 Organic Revenue Delta: Down 3% compared to Q3 2023.
- Nine-Month Organic Change: Flat at 0%.
- The Grand Mission: Protecting brand equity and keeping margins pristine.
So, stop worrying about your favorite design houses. They are doing just fine counting their billions behind velvet ropes.