FRANCE – LVMH, the world’s largest luxury conglomerate, has reported a 4.4 percent decline in revenue for the third quarter of 2024, marking its first sales drop since the pandemic. 

The company’s revenue for the period stood at €19.08 billion (US$20.7B), down from €19.964 billion (US$21.7M) in the same quarter last year.  

Organic sales also saw a 3 percent year-on-year decrease, driven largely by weakening demand in key markets like China and Japan. 

The Fashion & Leather Goods division, which includes iconic brands such as Louis Vuitton and Dior, experienced a 5 percent decline in revenue, generating €9.151 billion (US$9.9B). This category remains LVMH’s largest business group but faced significant challenges during the quarter. 

The Wines & Spirits division continued its downward trend, posting a 7 percent year-on-year decline, following contractions of 12 percent and 5 percent in the first and second quarters, respectively.  

The segment has been hit hard by sluggish demand, particularly in China, where consumer confidence has reached an all-time low, comparable to levels seen during the Covid-19 pandemic. 

Sales in Japan, another important market for LVMH, also slowed. While the region had seen significant growth earlier in the year, sales rose by only 20 percent in the third quarter compared to surges of 32 percent and 57 percent in the first and second quarters. The strengthened Japanese yen has impacted consumer demand in the country.  

In the rest of Asia, predominantly China, revenue fell by 16 percent year-on-year. 

In contrast, LVMH’s performance in Europe showed modest growth, with a 2 percent increase in sales. The U.S. market remained flat during the period. 

Despite the challenges, LVMH remains optimistic about its future, with the company focusing on enhancing brand desirability and maintaining its position as a global leader in luxury goods.  

The group recently acquired a minority stake in French Bloom, a premium alcohol-free sparkling wine brand, and launched SirDavis whiskey, a collaboration with singer Beyoncé, signaling its intent to diversify and expand its portfolio. 

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE