The world's largest manufacturer of luxury goods LVMH Moet Hennessy Louis Vuitton SA summed up the results of the first half of 2024, demonstrating a decrease in key indicators.

The company's net profit for the reporting period decreased by 14% compared to the same period last year, reaching 7.27 billion euros. LVMH's revenue also showed a 1% drop, amounting to 41.68 billion euros. At the same time, organic growth, excluding exchange rate fluctuations and business purchase and sale transactions, amounted to 2%. Analysts expected more optimistic results: revenue forecasts were at the level of 42.22 billion euros, and net profit — 7.45 billion euros. The decline in LVMH indicators is explained by the continuing uncertainty in global markets.

The largest drop in sales was recorded in the segment of fashion and leather goods (-2%, to 20.77 billion euros).

The Sephora, DFS and Le Bon Marche network showed revenue growth of 3% to 8.63 billion euros. Sales of LVMH alcoholic beverages fell by 12% to 2.81 billion euros, while watches and jewelry fell by 5% to 5.15 billion euros. The perfumery and cosmetics segment showed an increase of 3%, reaching 4.14 billion euros.

Despite the decline in performance, LVMH remains the leader in the global luxury goods market.

The company owns 75 brands, including Louis Vuitton, Fendi, Hennessy, Moet & Chandon, Dom Perignon, Veuve Cliquot, Krug, TAG Heuer, Hublot, Zenith, Tiffany, Bulgari, Chaumet, Fred, Loewe, Marc Jacobs, Emilio Pucci, Christian Dior, Guerlain, Givenchy and Kenzo.

LVMH shares declined 0.1% on Tuesday.

Since the beginning of the year, the company's capitalization has fallen by 5.7% to 345.5 billion euros.

Do you want to keep up to date with the main events in the fashion industry and brand news?