LVMH, the global leader in luxury goods, announced its 2024 financial results, revealing a modest 1% organic revenue increase to EUR 84.7 billion. Despite a challenging economic environment, the company managed to stabilize its performance, with fourth-quarter growth matching the annual rate. However, recurring operating profits fell by 14% to EUR 19.6 billion compared to the previous year.
The company's regional sales showed mixed results. Japan led with a remarkable 28% growth, driven by a stronger yen, while the United States and Europe saw moderate increases of 3% and 2%, respectively. In contrast, Asia experienced an 11% decline, largely due to economic uncertainties in China, which impacted overall revenue.
The Watches and Jewelry division reported a 2% organic decline in revenue, totaling EUR 10.5 billion. However, the segment showed signs of recovery in the final quarter, with a 3% improvement. Recurring operating profits for this group dropped by 28%, reflecting ongoing challenges in the luxury watch market.
2024 also saw significant leadership shifts within LVMH's watch brands. Antoine Pin was appointed CEO of TAG Heuer, while Julien Tornare took over as head of Hublot, replacing Ricardo Guadalupe. These changes aim to revitalize the brands and adapt to evolving market demands.
