The LVMH luxury group, which includes 75 of the world's most prestigious brands, saw its sales rise in the fourth quarter. Trading value increased by 9% to 24 billion euros, which is a clear sign of the strength of the luxury products sector.
LVMH is controlled by Europe's richest man, Bernard Arnault, and has prestigious brands such as Louis Vuitton, Tiffany & Co., Bulgari, and Moët Hennessy in its portfolio.
For the whole of 2023, sales amounted to €86.2 billion, up 13 percent on the previous year. However, the result of 30.3 euros per share was lower than expected in advance.
CFO Jean-Jacques Guionni highlights cost control measures as essential to achieve a good result. It excludes an increase in commodity prices until 2024.
In the wake of the pandemic, the luxury sector has strengthened strongly, but high interest rates and strong inflation have led many to postpone purchases of expensive bags and wallets.
This consequently created a crack in the stock. Since its peak in the summer of 2023, the stock has fallen by 20 percent, having doubled in value since the outbreak of the pandemic.
On Thursday, the stock rose 4.7 percent on the New York Stock Exchange.
– We enter 2024 with renewed confidence, built on our sought-after brands. “This will be a promising year for us,” says Arno.
It recently became clear that two of his children would be nominated for the LVMH board, as they already have two older brothers. The Arnault family controls 48% of LVMH.
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