Louis Vuitton: Sales and profit slashed amid luxury spending slowdown
A continued slowdown in luxury retail spending saw sales at the UK arm of Louis Vuitton slashed by almost £90m and profit tumble during 2024, it has been revealed.
The fashion powerhouse has reported sales of £488.2m for its latest financial year, down from the £575.2m it achieved in 2023.
New accounts filed with Companies House also show its pre-tax profit decreased from £132.1m to £84.3m over the same period.
This is the first fall in revenue for Louis Vuitton’s UK arm since its sales went from £483.3m to £371.7m in 2020.
Louis Vuitton is owned by LVMH whose brands also include Dior and Tiffany & Co.
Louis Vuitton ‘showing great strength’
A statement signed off by the board said: “The turnover decreased by 15 per cent which is explained by a slowdown trend in consumer spending after years of high growth following the global pandemic.
“The decrease in operating profit is predominantly as a result of decreased turnover and a favourable tax adjustment in 2023.
“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.”
It added: “2024 was a year of continued economic and political volatility.
“The economic environment is suffering from on-going inflation and interest rates impacting consumer spending.
“Despite this challenging macro-economic environment, Louis Vuitton continues showing great strength.”
On its future, Louis Vuitton added: “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.
“To do this, we continue developing and maintaining strong client relationships.”
Luxury retail sales in the decline
Louis Vuitton is the latest in a series of high-end brands who have reported falling sales in recent months.
Revenue at luxury handbags brand Radley London declined during its latest financial year as it warned it will increase its prices in the US amid the ongoing uncertainty surrounding US President Donald Trump’s tariffs.
In May, the owner of Ray-Ban issued a warning over its performance this year after its UK sales and profit fell in 2024.
In the prior month, the UK arm of luxury fashion brand Michael Kors revealed plans to lower its prices after suffering a significant hit to its sales.