(News Bulletin 247) – The world number one luxury retailer delivered its accounts for the whole of last year this Thursday, which set a new record, despite a market slowdown.

After STMicroelectronics this morning, LVMH is the second CAC 40 company to deliver its annual results. And once again, these figures mark new records, despite a slowdown in the luxury market.

The world number one luxury company announced this Thursday that it had generated a net profit of 15.17 billion euros for 2023, an increase of 8% over one year.

Sales increased by 13% on a comparable basis to 86.2 billion euros, and by 9% on a published basis.

“While remaining vigilant in the current context, we approach the year 2024 with confidence,” declares the group’s CEO Bernard Arnault, quoted in the press release.

“It will be an exceptional and inspiring year, marked by our partnership with the Paris 2024 Olympic and Paralympic Games. (…) This is a new opportunity for LVMH to further strengthen its lead in the global luxury market and to contribute to France’s influence throughout the world”, he adds.

A stable current operating margin

The luxury giant which owns, among others, the Louis Vuitton, Dior, Tiffany and Moët & Chandon brands speaks of “another record year in a disrupted environment”. Since the third quarter, the luxury market has slowed down in Europe and the United States and has not regained the expected growth in China.

Profitability is stable with a current operating margin of 26.5%.

The luxury giant remains driven by its flagship “fashion and leather goods” division (Louis Vuitton, Dior, Celine, Fendi, etc.), whose sales increased by 9% to reach 42.2 billion euros. Louis Vuitton had “an excellent year,” according to the press release. Nicolas Ghesquière, for the women’s collections, renewed his contract for five years and 2023 will also have been the year of Pharell Williams’ first show for men’s fashion.

Selective distribution jumped 20% to 17.9 billion euros in sales, notably thanks to “an exceptional performance” from the perfumery brand Sephora.

Watches and jewelry grew by 3%, to approach 11 billion in turnover. Tiffany successfully reopened its flagship on 5th Avenue in New York in 2023, Bulgari is “in strong growth” and Tag Heuer “reaches a sales record”.

Perfumes and cosmetics achieved growth of 7% to 8.3 billion euros in sales, with a “remarkable performance” from Christian Dior.

During the general meeting on April 18, LVMH will propose a dividend of 13 euros per share (it was 12 euros in 2022).

(With AFP)