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LVMH’s 14% drop in net profit from €8.48bn to €7.27bn for the first half of the year was put down to the uncertain geopolitical and economic environment.

Moreover, the luxury goods company reported a 1% drop in revenue for the first half of 2024, from €42.24bn to €41.68bn, as wealthy Chinese shoppers also cut back their spending.

Despite the earnings update, Bernard Arnault, chairman and chief executive of LVMH, whose brands include Louis Vuitton, Dior and Celine, remained upbeat.

“The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty.

“Driven as ever by our dual focus on desirability and responsibility, we have continued to work towards achieving the targets set out in our environmental and social action programs. In a year marked by our partnership with the Paris 2024 Olympic and Paralympic Games, we are honoured to share our creativity, excellent craftsmanship and deep commitment to society to make this event a resounding success and an opportunity for France to shine on the world stage.

“While remaining vigilant in the current context, the group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”

LVMH 2024 Outlook

LVMH said that, in an uncertain geopolitical and economic environment, the group remains confident of its business and will maintain a strategy focused on continuously enhancing the desirability of its brands.

“Our strategy of focusing on the highest quality across all of our activities, combined with the energy and unparalleled creativity of our teams, will enable us to reinforce the LVMH Group’s global leadership position in luxury goods once again in 2024.”

An interim dividend of €5.50 will be paid on Wednesday, 4 December, 2024.