Bernard Arnault, Chairman and CEO of LVMH Moët Hennessy Louis Vuitton, speaks at a press conference to announce LVMH’s 2023 annual financial results on January 25, 2024 in Paris, France.
Benoît Tessier | Reuters
LVMH Shares plunged more than 7% in morning trading Wednesday after the French luxury conglomerate reported slightly higher fourth-quarter sales late Tuesday, but failed to impress investors who had set the bar high following strong earnings from rivals.
LVMH’s stock price recently fell 7.5%, but rival Gucci’s owner also kering It fell by 5%.
Organic revenue increased 1% in the fourth quarter to total 22.7 billion euros ($27.2 billion), similar to the previous quarter, but down 1% for the full year.
Investors had expected stronger numbers. “With the following friends, Richemont, burberryand cucinelli “The benchmark rose slightly as we reported solid quarter-on-quarter improvement and exceeded expectations,” Citi analysts said in a note.
“2026 is not simple,” Chief Executive Bernard Arnault told investors, warning that geopolitical factors could weigh on the luxury brand’s outlook.
“I have always said that I am optimistic about our business in the medium term, but in the short term it is very difficult to give a serious outlook,” Arnault said on Tuesday. “It is very difficult to control all these geo-economic influences on our company because so many events and decisions are being paced in different countries.”
LVMH’s main fashion and leather goods division, which accounts for the bulk of the group’s profits, saw organic sales fall 3% in the fourth quarter, roughly in line with expectations, while wine and spirits fell 9%. The company’s select retail business, which includes beauty brand Sephora, and its watches and jewelry division grew 7% and 8%, respectively, in the quarter.
