🔎 LVMH is already 30% below the peaks!💎
Despite a challenging global environment and challenges in key markets such as China and Japan, French giant LVMH (Louis Vuitton Moët Hennessy) continues to show exceptional stability. In the first nine months of 2024, the company achieved sales of €60.8 billion, with some divisions able to benefit from innovation and a strong brand identity.
Even after a slight decline in growth, LVMH is steadily gaining market share - mainly thanks to brands such as Louis Vuitton, Christian Dior and Guerlain.
Strong brands, innovation and growth markets 🌍
Brands such as Louis Vuitton and Christian Dior saw huge visibility during the Paris 2024Olympics this year , boosting their global prestige. Vuitton once again emerged as a leader of innovation in luxury travel, while Dior demonstrated a brilliant fusion of tradition and modernity.
In the cosmetics market, the Christian Dior a very strong performance. Also Rihanna as the new face J'adore increases the appeal of this classic perfume among young consumers.
Challenges in markets and new partnerships 🤝
On the other hand, the wine and spirits division faced a decline in sales of 8 % - mainly due to the normalization of demand following the pandemic and the weakening of the market in China. The Hennessy brand saw a weaker performance in the Chinese market, but at the same time there was a recovery in the US where sales started to pick up again. The group is also expanding its presence in global markets, for example through a new joint venture with Beyoncé to produce SirDavis American whiskey . 🥃🎶
The recently announced 10-year global partnership is also attracting a lot of attention LVMH s Formula 1which is expected to begin in 2025. Several of the Group's key brands will be involved in this partnership, including Louis Vuitton and TAG Heuer, underlining the Group's commitment to continuous innovation and growth. 🏎️💼
Uncertainties in China!
One of the most significant challenges is the decline in demand for luxury goods in China, where consumer confidence has fallen to pandemic levels. In Japan, growth has been impacted by a stronger yen, leading to a decline in momentum that previously delivered double-digit growth. These factors led to a decline in third quarter sales of 3 %, causing the first decline since the pandemic.
However, LVMH remains confident in its strategy despite these fluctuations. The company relies on the authenticity and high quality of its products, as well as its excellent distribution and agile organisation, to continue to strengthen its leading position in the global luxury goods market.
Future outlook 🌟
Until the end of 2024 and beyond, LVMH will focus on strengthening its portfolio of luxury brands. Despite uncertainties in global markets and a slight decline in sales, particularly in China and Japan, the Group remains in a strong position thanks to its ability to adapt to a changing environment.
Has anyone taken advantage of the price drop to buy shares in this luxury giant? 📈💰