MC Lvmh Moet Hennessy Louis Vuitton SE

By Mauro Orru

LVMH Moet Hennessy Louis Vuitton posted sales above analysts' forecasts for 2023, led by strong growth at its core fashion and leather-goods division, and said it had entered the new year with confidence.

The owner of the Louis Vuitton, Dior and Celine brands on Thursday reported sales of 86.15 billion euros ($93.79 billion) for 2023, up 13% on an organic basis from the previous year. Still, organic sales growth is below the 17% the group reported between 2021 and 2022.

After years of strong results fueled by a surge in demand for luxury goods, the industry has been grappling with slowing sales globally. China's economic woes added to the wider slowdown. The country was the world's largest luxury market before the pandemic. However, China's economy has been suffering from a prolonged downturn in the property sector as well as weak exports and consumer demand.

"While remaining vigilant in the current context, we enter 2024 with confidence, backed by our highly desirable brands and our agile teams," said Bernard Arnault, chairman and chief executive of the group.

LVMH's fashion and leather-goods division contributed EUR42.17 billion to total revenue, with sales up 14% organically. Selective retailing, the unit that houses Sephora, posted a 25% increase in revenue to EUR17.89 billion, while watches and jewelry and perfumes and cosmetics fared less well, with sales up 7% and 11% respectively.

Wines and spirits is the only business unit that recorded lower sales, with a 4% contraction that the company attributed to a high comparison basis in 2022 and high inventory levels.

Net profit climbed to EUR15.17 billion from EUR14.08 billion in 2022, and the company said it would propose a dividend of EUR13 a share at its shareholders' meeting on April 18, up from EUR12 a share it paid the previous year.

Analysts had forecast annual sales of EUR85.74 billion and a EUR15.68 billion profit, according to FactSet.

LVMH said it should continue to grow and gain market share this year despite geopolitical and macroeconomic uncertainties.

On Thursday, the group said it would propose appointing Henri de Castries as well as Bernard Arnault's sons, Alexandre and Frederic Arnault, to the board of directors at the April 18 shareholders' meeting following the decision by Charles de Croisset, Yves-Thibault de Silguy and Nicolas Bazire not to stand for re-election.

"As I have always said, LVMH is a family-run group, whose vocation is to ensure the long-term development of each of its Maisons in keeping with their identity, their heritage and their expertise," Arnault said. "I am delighted to welcome Alexandre and Frederic to the board. I am convinced that they will each bring interesting perspectives."

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

January 25, 2024 12:55 ET (17:55 GMT)

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