"Lessons on LVMH: A Sluggish 2024, but Confidence in 2025

Here is the revised blog post:Lessons on LVMH: A Sluggish 2024, but Confidence in 2025The luxury goods industry is constantly evolving, and one company that has had a significant impact is LVMH (Moët Hennessy Louis Vuitton). With a market value of over $13 billion, it's no surprise that their financial reports are closely watched. In this blog post, we'll delve into the company's 2024 results and what they mean for the industry.A Sluggish YearLVMH's net profit took a significant hit in 2024, dropping 17% to €12.55 billion ($13 billion). Sales also declined, slipping 2% to €84.7 billion. This decline is attributed partly to the end of the post-Covid boom.Consolidation and ResilienceJean-Jacques Guiony, LVMH's financial director, framed the year as a necessary consolidation period. "We had three years of euphoria in 2021, 2022, and 2023, and a year of consolidation in 2024," he said. Despite this slowdown, LVMH demonstrated resilience, with a slight improvement in sales towards the end of the year.Quarterly SalesThe fourth quarter saw little change in sales, which remained steady at €23.9 billion. This stability is a testament to the company's ability to adapt and thrive in uncertain times.Segment PerformanceLet's take a closer look at how LVMH's various segments performed: Leather and Fashion: Sales fell 3% to €41 billion, primarily due to the decline of certain brands. Retailing: This segment grew 2% to €18.3 billion, driven by Sephora's continued success. Watches and Jewelry: Revenue dropped 3% to €10.6 billion, while Wines and Spirits fell 11% to €5.9 billion.A Strong FinishDespite the challenges of 2024, LVMH remains confident in its ability to navigate the industry's uncertainties. Chief Executive Bernard Arnault stated, "In 2024, amid an uncertain environment, LVMH showed strong resilience... While remaining highly vigilant with regard to cost management and our single-minded focus on the desirability of our designs, we enter 2025 with confidence."Dividend DeclarationLVMH will pay a dividend of €13 per share, reflecting the company's commitment to rewarding shareholders.A Look AheadAs LVMH looks to the future, it's clear that the company is poised to continue its success. By focusing on cost management and maintaining its focus on desirable designs, LVMH is well-equipped to handle any challenges that come its way. Will 2025 be a year of rebound for the luxury goods industry? Only time will tell.Takeaways LVMH's net profit dropped 17% in 2024 due to a decline in sales. The company demonstrated resilience and adaptability, remaining confident in its ability to navigate uncertain times. LVMH's various segments performed differently, with Retailing and Watches and Jewelry experiencing declines.Lessons for Music ProducersAs music producers professionals, we can draw parallels between LVMH's challenges and our own. Just as the company must adapt to changing market conditions, we too must be agile in the ever-evolving music industry. By focusing on our strengths and being open to new opportunities, we can create a successful future for ourselves.ConclusionLVMH's 2024 results serve as a reminder that even the largest and most successful companies can face challenges. However, by remaining vigilant and focused, they can emerge stronger than ever. As music producers professionals, we would do well to apply these lessons to our own careers, embracing the uncertainty of the industry while staying committed to our craft.In the words of Bernard Arnault, "While remaining highly vigilant with regard to cost management and our single-minded focus on the desirability of our designs... we enter 2025 with confidence." By auditioning for success and being open to new opportunities, we can create a bright future for ourselves in the music industry.Keywords: LVMH, luxury goods, net profit, sales, fashion, retailing, watches and jewelry, wines and spirits, dividend, cost management, desirability.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.