LVMH, facing a notable stock price drop since late 2022, is encountering slowing sales after a post-COVID boom. Revenue decreased by 4% and profits from recurring operations fell by 15%, amounting to $10.5 billion in the first half of 2024. This downturn affected multiple sectors, including wine, spirits, fashion, and leather goods, while watches and cosmetics saw stability. Despite a disrupted geopolitical and economic environment, LVMH claimed resilience and mentioned stable demand in Europe and the US. Kering, another luxury brand, also faced significant sales declines, indicating challenges within the luxury sector.
When athletes began returning their 2024 Paris Olympic medals due to corrosion, it symbolized broader issues for luxury brands, particularly LVMH, following a post-COVID boom.
LVMH's revenues dropped 4% in the first half of 2024, with operating profits down 15%, signaling a slowdown in the luxury sector amid rising prices.
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