Lvmh fashion division posts solid growth in Q4
Lvmh Moet Hennessy Louis Vuitton (LVMHF) said Thursday that its growth was higher quarter-on-quarter in Q4, while organic growth was 13% year-on-year in 2023.
The luxury goods group added that fourth-quarter organic revenue growth came in at 10%, with its fashion and leather goods division climbing by 9%. Selective retailing was the biggest winner in Q4, with growth climbing 21%, while watches and jewelry saw the slowest growth at just 3%.
For 2023 overall, LVMH said all business groups reported strong organic revenue growth, except Wines and Spirits, which faced a high basis of comparison and high inventory levels.
«Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges,» said Bernard Arnault, Chairman and CEO of LVMH. «We enter 2024 with confidence, backed by our highly desirable brands and our agile teams.»
Reacting to the report, analysts at Morgan Stanley, who have an Equal Weight rating on the stock, said it was a better-than-expected end to the year for LVMH.
«Overall, this looks a solid set of results from LVMH at first glance,» analysts commented. «4Q sales for the key fashion and leather goods division came in more/less in line with VA consensus +9%, albeit we think very slightly below investor expectations post Richemont's beat last week, with investor expectations closer to +10% based on our conversations.»
«Elsewhere, Wines & Spirits positively surprised, posting the largest beat (+4% vs. -5.5% expected) and Selective Retailing (+21% vs. +15.4%) also continued to be a bright spot, while Watches & Jewellery reassuringly posted +3% growth (vs. +2.3% VA consensus) and P&C was in line +10%,»
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