Paris-based luxury conglomerate LVMH concluded its fiscal year on a positive note, revealing robust revenue growth in both the fourth quarter and the full year of 2023.
In the fourth quarter, LVMH experienced a 6% year-over-year increase in revenue, amounting to €23.95 billion ($25.97 billion). The overall annual revenue for 2023 reached €86.15 billion ($93.4 billion), reflecting a significant 9% growth compared to the previous year.
Sales in the United States were a standout, rising by 8% in the fourth quarter and 4% for the entire year. Despite economic and geopolitical challenges, the U.S. remains a crucial market for LVMH, tying with Europe as the second-largest revenue contributor at 25% in 2023.
Bernard Arnault, CEO of LVMH, emphasized the exceptional appeal of the company’s maisons in navigating the challenges of the past year, stating, “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.”
While LVMH reported organic revenue growth across all business groups, the watches and jewelry segment experienced a marginal decline of 2% in the fourth quarter, totaling €2.95 billion ($3.2 billion). Nevertheless, the full-year revenue for this segment reached €10.9 billion ($11.82 billion), representing a 3% increase year-over-year.
Tiffany & Co., Bulgari, and TAG Heuer contributed to the success of LVMH’s watches and jewelry category. Tiffany & Co.’s flagship reopening in New York City, along with the popularity of its “Lock” and “Hardwear” collections, played a pivotal role in the positive results. Bulgari’s high jewelry offerings, including the “Mediterranea” and “Cabochon” collections, garnered strong consumer interest.
In the watch category, TAG Heuer celebrated record-breaking revenue during the 60th anniversary of its “Carerra” collection. Hublot collaborated with artist Takashi Murakami on a unique collection of watches linked to NFTs and served as the official timekeeper for the FIFA Women’s World Cup in Australia. Zenith expanded its “Defy” collection and enhanced its “Pilot” line.
Looking forward, LVMH expressed confidence in its growth prospects for 2024 despite the uncertain geopolitical and macroeconomic environment. In addition, founder and CEO Bernard Arnault, 74, is planning to nominate his sons, Alexandre Arnault and Frédéric Arnault, to the LVMH board, further consolidating family representation on the board if approved. The potential addition of Alexandre and Frédéric would bring the total number of Arnault siblings on the board to four out of five.
