LVMH Reports 2024 Financial Results: Watches & Jewellery Segment Declines Amid Global Market Shifts
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury conglomerate, has released its financial report for 2024, showcasing moderate revenue growth but declining profitability amid global economic challenges.
Despite an overall revenue increase of 1% to €84.7 billion, profit from recurring operations fell by 14% to €19.6 billion, highlighting margin pressures and slowing demand in key segments. The group’s watches and jewellery division experienced a 2% decline in revenue, reaching €10.5 billion, reflecting softening demand for high-end timepieces and jewellery, particularly in the Chinese market.
Regional Performance: Japan Leads Growth, China Struggles
Japan: The Standout Market
Japan was the strongest performer for LVMH in 2024, posting an impressive 28% revenue growth and contributing 9% of the group’s total revenue. This surge was driven by:
✔️ A stronger yen, increasing the purchasing power of local consumers.
✔️ High domestic demand for luxury goods, particularly in jewellery and premium watches.
✔️ Tourism rebound, with affluent international travellers fueling luxury sales.
The United States: Resilient Performance
The US market grew by 3%, making up 25% of LVMH’s revenue. Growth was driven by strong sales in jewellery and leather goods, particularly through Tiffany & Co. and Bulgari, which benefited from continued demand for high-end jewellery collections.
Europe: Steady Expansion
Luxury sales in Europe increased by 2%, also representing 25% of total revenue. While local demand remained stable, the region benefited from strong tourist spending, particularly from Middle Eastern and American luxury buyers.
China & Asia (Excluding Japan): The Biggest Challenge
Asia (excluding Japan) faced an 11% decline, weighing heavily on the group's overall performance. China, a historically dominant market for luxury, saw a significant downturn, driven by:
🔹 A slowdown in economic growth, impacting consumer spending.
🔹 Government measures to curb ostentatious consumption, affecting luxury goods sales.
🔹 Weakened confidence in the property and stock markets, reducing discretionary spending on high-end watches and jewellery.
This downturn underscores the growing volatility of the Chinese luxury market, prompting LVMH to diversify growth strategies beyond China.
Watches & Jewellery: A Mixed Year for Luxury Timepieces
LVMH’s watch and jewellery division, which includes brands such as TAG Heuer, Hublot, Zenith, Bulgari, Chaumet, and Tiffany & Co., saw reduced sales in Asia, impacting overall performance.
✔️ Jewellery Segment: Tiffany & Co. & Bulgari Remain Strong
While the jewellery segment remained relatively stable, Tiffany & Co. and Bulgari continued to perform well in Western markets, benefiting from high-profile product launches and exclusive collections.
✔️ Watches: A Slowdown in Demand
The watch segment faced greater challenges, as demand for high-end timepieces declined in China, where brands such as TAG Heuer, Hublot, and Zenith typically perform well.
Performance by Brand:
🔹 TAG Heuer – Resilient in the US & Europe, but weaker sales in China.
🔹 Hublot – Impacted by Asian market slowdown, but limited editions and collaborations helped in Western markets.
🔹 Zenith – Continued focus on high-horology models, maintaining demand among collectors but facing broader market challenges.
LVMH’s Strategic Focus for 2025
To navigate these shifting market dynamics, LVMH is focusing on:
✅ Strengthening its digital and e-commerce presence to reach younger, tech-savvy luxury buyers.
✅ Expanding retail networks in Japan and the Middle East, where demand remains strong.
✅ Launching exclusive high-jewellery and watch collections to cater to ultra-high-net-worth clients.
✅ Diversifying beyond China, reducing reliance on a single market for growth.
With Watches & Wonders Geneva 2025 on the horizon, LVMH’s watch brands are expected to unveil innovative new models, positioning themselves for a stronger performance in 2025.
Despite the current challenges, LVMH remains the dominant force in luxury, leveraging its brand heritage, craftsmanship, and global reach to adapt to shifting consumer trends. The coming year will be pivotal in redefining strategies for its watches and jewellery division, ensuring long-term growth and resilience in a rapidly evolving market.
