In this edition of the Glossy+ Research Briefing, we analyze LVMH’s 2024 first-quarter earnings. As one of the largest luxury conglomerates, its earnings report gives insight into the current state of the luxury market.
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LVMH saw a 3% growth in organic revenue during the first quarter
In the news: This week LVMH reported a slight dip in first-quarter 2024 revenue compared to the same period last year. Although LVMH experienced a 3% growth in organic sales, revenue was impacted by currency exchanges and the sale of its cruise retailer business Starboard. Starboard sells handbags, jewelry and beauty products on Carnival Cruise Line, Royal Caribbean and Holland America cruise ships.
Earnings analysis: The increase in organic growth that LVMH experienced during its first quarter was largely driven by strong performances in its specialty retailing segment, which includes Sephora, and in its perfume and cosmetics group. The perfumes and cosmetics group represented a 7% increase in organic growth and a 3% increase in reported growth, after taking into account a negative 4% currency impact.
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LVMH brands with strong first-quarter performances included Christian Dior, Guerlain, Fenty Beauty and Make Up For Ever. LVMH highlighted the following areas of expansion in its earnings call:
- Dior experienced broad-based growth globally, across all product categories. The relaunch of Rouge Dior drove sales in Dior’s makeup category. Other product categories, like fragrances and skincare, were driven by Sauvage, Miss Dior and Capture.
- Guerlain added a successful extension of its fragrances and skincare category, with new products from Aqua Allegoria and Abeille Royale.
- Fenty Beauty expanded its regional footprint into China through a partnership with Sephora.
- Make Up For Ever also added a successful product extension of its HD Skin Star range with HD Skin Hydra Glow.
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Sephora experienced a positive start to the year with continued growth in North America, Europe and the Middle East and store expansions, especially in North America. Environmental initiatives Clean@Sephora and Planetaware@Sephora rolled out worldwide and the brand signature “We belong to something beautiful” also expanded into more regions.
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