LVMH revenue falls despite "remarkable growth" at Sephora

LVMH has reported a 2% decrease in revenue to €20.7 billion for the first quarter of 2024, despite growth across its beauty businesses. Organic group revenue increased by just 2%.

The company said it had a "good start" to the year despite a geopolitical and economic environment that remains uncertain.

The perfumes and cosmetics business saw reported revenues rise 5% and organic revenues rise 7% to €2.1 billion. This was attributed to the group's "innovative momentum and selective distribution strategy".

Growth was driven by Christian Dior across fragrance, makeup and skincare, as well as Guerlain, Givenchy and Maison Francis Kurkdjian.

The selective retailing business also reported revenue up 5% on a reported basis and 11% organically to €4.1 billion, with Sephora once again achieving "remarkable growth". It comes as the global beauty giant prepares to open additional UK stores later this year.

However, the group's fashion and leather goods business saw revenues drop 2% to €10.4 billion on a reported basis. Organic sales increased 2% but remained lower than percentage growth in the previous quarter.

The watches and jewellery business also shared reported revenue declines of 5% to €2.4 billion, with organic sales down 2%.

Looking ahead, in an uncertain economic and geopolitical environment, LVMH said it remains "vigilant" and "confident" at the start of the year.

The company added that it will continue to pursue its strategy focused on the development of its brands, driven by a "sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution".