- Full year revenue rose 9%, 13% on an organic basis, to EUR86.2bn, with fourth quarter growth of 10%
- All divisions apart from Wines & Spirits saw organic growth
- Profit from recurring operations up 8% to EUR22.8bn
- LVMH acknowledged the tough economic backdrop but remains confident
Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown:
“LVMH remains a resilient port in an economic storm. Growth has been broadly reflecting the group’s extensive and diversified product offerings. The traditional Louis Vuitton shopper doesn’t flinch at inflation. However, that said, the rate of growth has slowed quite dramatically. So, in the grand scheme of things, the showing is strong, but you don’t have to look far to see signs of weakness.
Higher interest rate environments, and especially hard blows being dealt to entry-level luxury shoppers, means high-end goods aren’t flying off the shelves at quite the same rate. Coupled with extensive increases in investment, that means profit growth is looking slightly shabbier than it has done. These are all essentially bumps in the road though, with the underlying strengths of LVMH’s platinum coated conglomerate still intact.
Broader sentiment will be swayed by the cloaked details of succession planning as the much celebrated founder and CEO edges closer to retirement. Family-run and owned businesses tend to be managed with long-term business preservation in mind, which is a benefit for investors. But that doesn’t mean there won’t be some nerves when the new guard is eventually ushered in.
