Louis Vuitton UK has filed its accounts for 2024 at Companies House and it saw both sales and profits falling as retail spending declined across the luxury sector.
Its sales fell to £488.2 million last year from £575.2 million in 2023 while profits also dropped sharply. It was the first revenue fall at the UK arm of LVMH’s star brand since 2020, when sales were heavily impacted by Covid lockdowns that meant travel bans and enforced store closures.
The accounts also showed pre-tax profits falling to £84.3 million from £132.1 million and operating profit dropping 36% to £80.46 million. Net profit was down as much as 47% to £69.27 million, although it was more heavily taxed in its latest year compared to 2023.
The company said in the filing that the 15% turnover decline was “explained by a slowdown trend in consumer spending after years of high growth following the global pandemic… In an economic environment which remains uncertain globally, Louis Vuitton will continue to focus its efforts on developing its network and will maintain a strict control over costs”.
And it said that despite the challenging macroeconomic environment, it “continues showing great strength”, adding that “the level of business and the year-end position remain satisfactory for the company and the directors are confident of being able to develop the business further in the future. Our strategy prioritises organic growth, driven by providing exceptional services to existing clients as well as attracting new clients”.
With LVMH rarely breaking out results for its individual brands, it’s an interesting insight into one part of the business regionally, although of course it doesn’t tell the full story given the giant global operation that makes up the France-headquartered brand.
But it does say a lot about just how tough luxury retail was in the UK last year and perhaps also how the ongoing loss of VAT-free shopping for tourists is affecting spend on high-end items in Britain.
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