LVMH Moet Hennessy Louis Vuitton, the luxury conglomerate, has reported sales for 2023 that surpass analysts’ expectations. The company’s core fashion and leather-goods division drove this growth, and LVMH is optimistic as it enters the new year.
Impressive Sales Figures
In 2023, LVMH achieved sales of €86.15 billion ($93.79 billion), marking a significant 13% organic increase compared to the previous year. The fashion and leather-goods division contributed €42.17 billion to this total, experiencing a robust 14% organic growth.
Retail Success and Mixed Performance
LVMH’s selective retailing unit, which includes Sephora, experienced a notable 25% increase in revenue, reaching €17.89 billion. However, there was varied performance in other sectors. The watches and jewelry division enjoyed a modest 7% sales increase, while perfumes and cosmetics saw an 11% uptick. On the other hand, the wines and spirits unit dealt with a slight decline in sales by 4%.
Strong Profitability and Dividends
LVMH’s net profit for 2023 rose to €15.17 billion compared to the previous year’s €14.08 billion. As a result, the company plans to propose a dividend of €13 per share at its upcoming shareholders’ meeting on April 18, up from the €12 dividend paid in the previous year.
Analysts’ Expectations Met
According to FactSet, analysts predicted LVMH would achieve annual sales of €85.74 billion and a profit of €15.68 billion. These figures were slightly surpassed by the company’s actual results.