LVMH shares surged over 12% on Friday morning following the release of the company’s 2023 sales figures, signaling resilience in the luxury sector. The owner of renowned brands such as Louis Vuitton, Moët & Chandon, and Hennessy reported sales of 86.15 billion euros ($93.34 billion) for the year, surpassing market expectations and representing a 13% organic growth from the previous year.
The fashion and leather goods sector experienced a remarkable 14% annual growth, while perfumes and cosmetics saw an 11% increase. However, wines and spirits recorded a 4% decline in sales. The robust performance led to a nearly 13% increase in the Paris-listed stock by the close of Friday’s session.
Bernard Arnault, chairman and CEO of LVMH, expressed confidence in the company’s outlook for 2024, attributing the 2023 success to the appeal of their brands and the resilience of their teams in the face of economic and geopolitical challenges.
Despite a challenging end to 2023 due to geopolitical and macroeconomic factors impacting consumer spending, LVMH’s positive results provided a boost to the wider luxury sector. This was particularly significant in light of recent profit warnings from other luxury brands, such as Burberry, signaling a slowdown in high-end demand.
The encouraging performance of LVMH has instilled optimism among investors, with luxury stocks, including Burberry, showing positive momentum. The luxury sector’s ability to weather challenges and maintain growth underscores its enduring appeal and market strength.
