)
LVMH Q4 2023: Earnings Recap
)
)
The Q4 earnings report from LVMH sent positive shockwaves all over the world, affecting both luxury and spirits companies. As per tradition, we have gathered the most important Bernard Arnault quotes from their earnings call.
Key Insights
Revenue increased by 9% Year-over-Year, and EBIT increased with 7% YoY.
Sephora exceeded all forecasts and grew by X%
Bernard gave his thoughts on the LVMH succession race.
Despite overall growth, the Wine & Spirits segment had a revenue decrease by 10% YoY.
Ending 2023 on a high note
With a growth in both revenue and earnings year-over-year, Bernard reflects on the passed year:
)
Sephora exceeded all forecasts
Bernard shares some highlights from the year and reminds us about the breadth and quality of LVMH's brand portfolio:
)
The decentralized structure of LVMH
Diversifiction as a means to produce great results. Bernard compares the strategy for LVMH to that of Richemont Group:
"I don't plan to leave either in the short or medium term"
Bernard silencing the near-term succession speculation that started after him nominating two more of his children to the LVMH Board (Alexandre Arnault and Frédéric Arnault):
Discover LVMH in Quartr
Placeholder: Tap into a global database of searchable and audio-connected transcripts using Quartr Core. Quartr cover events such as earnings calls, capital markets days, and investor conferences from companies of all sizes and from around the world.
Ending 2023 on a high note
Bernard Arnault: Firstly, I need to tell you that the end of the year was rather good. The fourth quarter was -- delivered higher growth than the third. That's good news. We know that there were some uncertainties in the market, but that went well. And yet in 2023, the economic and especially geopolitical context was rather uncertain with the various conflicts throughout the world, with inflation, rising interest rates, I think, seem to be calming a bit. We'll see what the situation is in 2024, but a year marked by those 2 major global difficulties.
Sephora exceeded all forecasts
Good dynamic for all our watch and jewelry, Maison, excellent results by perfumes. J’'adore is still leading the way worldwide. Sauvage is #1 for the second or third consecutive most widely sold fragrance, both in the men's category and across all categories, and it's the first fragrance launched about 10 years ago. So that's very good performance. Selective retailing. Remarkable performance of Sephora that has managed to exceed all our forecasts. In fact, this morning, there was some interesting article in the Financial Times, are often interesting pieces in the FT. I don't know if we have anyone from the FT with us. But like Lesico, that's an excellent newspaper that I recommend to you that was actually saying in the FT that in LVMH. In the soft luxury segment, we have the 2 strongest brands in the world with Vuitton and Dior. And we have actually good competitors without mentioning 2 remarkable, Chanel and Hermes. And in hard luxury category that is watches and especially jewelry, we also have 2 outstanding brands at Tiffany and Bulgari. And in the competition, there's a very good group that is the Richemont Group announced its 2 great brands, Cartier and Van Cleef, so amongst the 8 brands considered the best. Well, we have half. It's pretty good. We'll see how things develop, if we can grow the scope or push some brands, other brands to join the top 4.
Discover LVMH in Quartr
Placeholder: Tap into a global database of searchable and audio-connected transcripts using Quartr Core. Quartr cover events such as earnings calls, capital markets days, and investor conferences from companies of all sizes and from around the world.