LVMH Moët Hennessy Louis Vuitton, a global leader in luxury goods, achieved a notable revenue of €86.2 billion in 2023, marking a 13% organic growth compared to the previous year. This increase was consistent across most of its business groups, except Wines & Spirits, which faced a challenging comparison basis and high inventory levels. Europe, Japan, and other Asian regions saw double-digit organic growth, contributing significantly to the company’s success.
LVMH’s portfolio includes notable brands such as Louis Vuitton, Christian Dior, Moët & Chandon, Hennessy, Marc Jacobs, TAG Heuer, Bulgari, Givenchy, Sephora, Fendi, Celine, Loewe, Kenzo, Emilio Pucci, Acqua di Parma, and Hublot.
The group’s profit from recurring operations rose to €22.8 billion, an 8% increase from 2022. The current operating margin remained stable, and the net profit attributable to the group was €15.2 billion, also up by 8%.
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Bernard Arnault, LVMH’s Chairman and CEO, highlighted the company’s resilience and appeal amidst economic and geopolitical adversities. “Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges,” Arnault stated. He emphasized the group’s strategy that fosters innovation, high-quality design, retail excellence, and cultural and historical dimensions. Arnault also underscored the group’s focus on environmental protection, talent development, and expertise preservation. Looking ahead to 2024, he expressed confidence, partly fueled by LVMH’s partnership with the Paris 2024 Olympic and Paralympic Games.
Key achievements for LVMH in 2023 included:
- Strong organic revenue growth, particularly in Europe, Japan, and Asia.
- Exceptional performance in the Fashion & Leather Goods segment with significant contributions from Louis Vuitton, Christian Dior, Celine, and other brands.
- Continued global success in fragrances, especially with Dior’s Sauvage.
- Robust growth in the jewelry sector, notably from Tiffany, Bulgari, and TAG Heuer.
- Sephora consolidating its position as a leader in beauty retail.
Dan Knight, Fashion Tech lead at Mindera, a leading software development and consulting company, commented:”Despite a challenging macro-economic climate, LVMH has reported a record year, with revenues of €86.2 billion, up 13% on 2022.
“LVMH’s success shows its strategy is working well globally, with all business groups recording strong growth, apart from Wines & Spirits. It’s worth noting the exceptional performance of Sephora, which is – once again – the world leader in beauty retail. This is a business that has experienced strong e-commerce growth though a mix of international expansion and clever technology – its mobile apps are some of the most popular on app stores, and its loyalty programmes appear to be really resonating with consumers.
“Sephora took off in the UK with its web and store launch in October 2022, following its acquisition of feelunique in 2021. The technology powering the Sephora websites and apps is different in each region. Whilst we expect software and engineering costs to rise in 2024, Sephora’s growth shows that the benefits of regional technology independence is outweighing the cost savings consolidation could have. ”
LVMH also made significant progress in its LIFE 360 environmental program, with initiatives like launching new circular services, protecting flora and fauna habitats, and significantly improving its renewable energy mix.
The company had a substantial economic and social impact worldwide, being France’s largest private-sector recruiter and supporting over 950 nonprofits and charitable foundations.
Financially, LVMH experienced growth across all sectors, with notable increases in revenue and profits in areas like Fashion & Leather Goods, Perfumes & Cosmetics, and Watches & Jewelry.
