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Global luxury sector ends 2024 on strong note despite mixed results

27 Mar '25
10 min read
Global luxury sector ends 2024 on strong note despite mixed results
Pic: Nalidsa / Shutterstock.com

Insights

  • Luxury giants delivered a mixed bag for FY24, with 5 out of 9 companies—Hermès, Moncler, Brunello Cucinelli, Prada, and Ralph Lauren—posting strong growth in both sales and profits.
  • Hugo Boss saw moderate growth, while LVMH, Salvatore Ferragamo, and Kering reported declines.
  • Overall, the sector reflected a solid fiscal, bolstered by strong performances in Europe and the US, despite challenges in Asia.

A total of nine luxury companies announced their financial performance for the period ended December 2024. In addition to a solitary nine-month performance from American company Ralph Lauren, four European luxury companies reported growth in their annual sales and profits for 2024. With only one ‘Moderate’ and three ‘Weak’ performances reported, the net result reflected a ‘Strong’ luxury performance for 2024.

Strong: Growth In Both Sales & Profits

Brunello Cucinelli S.p.A. (BIT: BC)

The board of directors of the Italian company Brunello Cucinelli S.p.A. reviewed the preliminary topline figures for the full year FY24, spanning January to December, on January 13, 2025.

The Solomeo-headquartered and Italian Stock Exchange-listed luxury goods company achieved revenues of €1,278.4 million (~$1,318 million), growing by 12.2 per cent at current exchange rates and 12.4 per cent at constant exchange rates compared to FY23. Its American, European and Asian markets grew by 17.8 per cent, 6.6 per cent and 12.6 per cent respectively, while the retail channel increased by 14 per cent and the wholesale channel by 8.8 per cent. Fourth-quarter turnover was €358 million (~$369 million)—the highest ever in absolute terms, registering an 11.6 per cent year-on-year increase.

With the aim of further strengthening the exclusivity of the brand and securing production facilities to support the long-term growth plan, the company’s investment in 2024 amounted to approximately €108 million, accounting for 8.5 per cent of turnover.

The company forecast healthy revenue growth of around 10 per cent, and healthy and balanced profits for the years 2025 and 2026.

The above figures were subsequently approved by the board of directors on March 13, 2025.

Ralph Lauren (NYSE: RL)

Ralph Lauren Corporation, a global leader in the design, marketing, and distribution of luxury lifestyle products, reported earnings per diluted share of $4.66, up 11 per cent from the prior year ($4.19) on a reported basis, and $4.82, up 16 per cent (vs $4.17) on an adjusted basis, excluding restructuring-related and other net charges, for the third quarter of FY25. Revenue for the reported quarter increased by 11 per cent to $2.1 billion on both a reported basis and at constant currency.

On a consolidated nine-month basis, revenues grew by 6.2 per cent; operating income increased from $648.6 million to $777.1 million in 2023.

In its outlook, the company expects constant currency revenues to grow by approximately 6 to 7 per cent in the fourth quarter, and the same for the full fiscal 2025. Based on current exchange rates, foreign currency is expected to negatively impact revenues by approximately 100 to 150 basis points in FY25. The company now expects its operating margin for the full year to expand by approximately 120 to 160 basis points in constant currency, up slightly from its prior outlook, driven by gross margin expansion of approximately 130 to 170 basis points.

Moncler S.p.A. (BIT: MONC)

The board of directors of Moncler S.p.A. reviewed and approved the draft financial statements of the company and the consolidated financial statements for FY24. Group consolidated revenues of €3,108.9 million (~$3,398 million) increased by 7 per cent at constant exchange rates and 4 per cent at current exchange rates compared with €2,984.2 million in 2023. This included an 8 per cent rise in Moncler revenues to €2,707.3 million and a 1 per cent drop in Stone Island revenues to €401.6 million, both at constant exchange rates.

Group EBIT stood at €916.3 million (~$1,001.53 million) (29.5 per cent of sales), compared with €893.8 million (30 per cent of sales) in the previous fiscal, showing resilience despite a more challenging trading environment. Group net income was €639.6 million (~$699.09 million), reflecting a 5 per cent increase over €611.9 million in 2023, with a margin of 20.6 per cent versus 20.5 per cent in 2023.

The Milan-based luxury group will continue to reinforce its three complementary brand dimensions—Moncler Grenoble, Moncler Collection and Moncler Genius—through distinctive events and tailored marketing strategies focused on unlocking their respective potential across all regions in 2025.

No updates on first quarter or full-year 2025 guidance were announced.

Hermès International (EPA: RMS)

French luxury group Hermès International delivered a strong performance for FY24 ended December 2024. The mid-February announcement reported fourth-quarter sales of €4 billion (~$4.36 billion), reflecting an increase of 18 per cent at both constant and current exchange rates. The Group’s consolidated revenue for FY24 amounted to €15.2 billion (~$16.57 billion), an increase of 15 per cent at constant exchange rates and 13 per cent at current exchange rates compared to 2023.

All geographical markets delivered solid growth: Asia excluding Japan grew by 7 per cent, Japan by 23 per cent, Europe excluding France by 19 per cent, France by 13 per cent and the Americas by 15 per cent. By sector, Leather Goods & Saddlery grew by 18 per cent, Ready-to-wear and Accessories by 15 per cent, and Silk and Textiles by 4 per cent, among others.

Stamping a positive profitability, recurring operating income reached €6.2 billion (~$6.76 billion), translating into a margin of 40.5 per cent of sales, and net profit (Group share) reached €4.6 billion (~$5.02 billion), representing 30.3 per cent of sales. At the end of December 2024, currency fluctuations had a negative impact of €235 million on revenue.

At the Group’s General Meeting scheduled for April 30, 2025, a dividend of €16.00 per share will be proposed.

No financial figures relating to the 2025 outlook were announced.

Prada S.p.A. (HKG: 1913)

Hong Kong Stock Exchange-listed Prada S.p.A. reported a strong consolidated financial performance for FY24 ended December 31, 2024, as reviewed and approved by the board of directors on March 4, 2025.

Net revenues of €5.4 billion (~$5.89 billion) were up by 17 per cent from 2023 in constant currency, including retail sales of €4.8 billion (~$5.23 billion), up by 18 per cent, driven by like-for-like, full-price volumes. Prada’s retail sales increased by 4 per cent, while Miu Miu’s growth was a whopping 93 per cent. While Asia-Pacific, Europe, Japan and the Middle East registered double-digit growth, the Americas, showing sequential improvement, posted double-digit growth in H2.

EBIT margin expanded to 23.6 per cent of sales, amounting to €1.3 billion (~$1.42 billion); Group net income of €839 million was up by 25 per cent year-on-year.

The board of directors will also propose to the shareholders’ General Meeting, to be held on April 30, 2025, a dividend distribution of €0.164 per share.

Moderate: Growth In Either Sales Or Profits

Hugo Boss AG (ETR: BOSS)

German luxury group Hugo Boss reported a currency-adjusted sales increase of 3 per cent amounting to €4.3 billion (~$4.7 billion) in 2024, fuelled by strong fourth-quarter growth of 6 per cent over the same quarter last year. Both quarterly and full-year sales growth in the Americas (13 per cent and 8 per cent respectively), and EMEA (6 per cent and 3 per cent respectively), contributed to the growth momentum. However, subdued demand in China led to a 2 per cent decline in sales in the Asia-Pacific region, both in the quarter and on a full-year comparison.

Although gross margin improved by 90 basis points in the reported quarter and by 30 basis points for 2024, driven by substantial efficiency gains in sourcing, total EBIT of €361 million (~$345.15 million) (8.4 per cent margin) was down from €410 million (9.8 per cent margin) in 2023. The decline was attributed to retail impairments. The Group proposed a dividend of €1.40 per share for 2024, reflecting confidence in its ongoing robust cash flow generation.

The Group outlook for 2025 includes a sales projection in line with the prior year, ranging between €4.2 billion and €4.4 billion, i.e. growth of (-)2 per cent to 2 per cent; EBIT is expected to increase between 5 to 22 per cent to €380 million to €440 million; and EBIT margin is expected to grow between 9 to 10 per cent, supported by further efficiency gains.

Weak: No Growth In Sales & Profits

LVMH (EPA: MC)

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury goods group, reported full-year revenues of €84.7 billion (~$88.29 billion), growing 1 per cent organically but down 2 per cent on a reported basis. Compared to the third quarter, the fourth quarter also grew by 1 per cent, as per the company’s late January announcement.

Profit from recurring operations, amounting to €19.6 billion (~$20.43 billion) and representing an operating margin of 23.1 per cent, was down by 14 per cent compared to the previous year. Exchange rate fluctuations had a negative impact, particularly on Fashion & Leather Goods and Wines & Spirits, the company reported. Net profit attributable to the Group amounted to €12.6 billion, down by 17 per cent. However, free cash flow of €10.5 billion was up by 29 per cent.

Salvatore Ferragamo S.p.A. (EXM: SFER)

Salvatore Ferragamo Group’s fourth-quarter and full-year 2024 preliminary consolidated revenue figures were released on January 30, 2025. Full-year revenues stood at €1,035 million (~$1,069.38 million), declining by 8.2 per cent and 10.5 per cent compared to FY23, at constant and current exchange rates respectively. For the quarter, consolidated revenues of €291 million (~$301 million) registered declines of 4 per cent (constant currency) and 6.7 per cent (current rates) on a quarter-to-quarter comparison with 2023.

During the year, the wholesale channel was down 21.3 per cent due to rationalisation, and the DTC channel was down 3.8 per cent despite positive results in Europe, the US, Japan and Latin America, which were offset by negative performance in the Asia-Pacific region. Sales in EMEA decreased by 7.8 per cent, North America by 2.6 per cent, and Asia-Pacific by 18.9 per cent, while sales growth in Japan and Central & South America remained positive.

Salvatore Ferragamo S.p.A. is the parent company of the Salvatore Ferragamo Group, a renowned name in the luxury industry whose origins date back to 1927. The brand is known for the creation, production, and global distribution of luxury collections of shoes, leather goods, apparel, silk products and other accessories for men and women, in addition to eyewear, watches and fragrances under licence.

KERING S.A. (EPA: KER)

Kering’s annual revenue amounted to €17.2 billion (~$18.80 billion) in 2024, down 12 per cent both as reported and on a comparable basis. Fourth-quarter revenues were also down by the same percentage. Annual sales from the directly operated retail network, including e-commerce, fell by 13 per cent on a comparable basis, affected by lower store traffic in adverse market conditions. Wholesale revenue of the Houses (Group brands) was down 22 per cent, and at Group level, wholesale and other revenue was down 9 per cent, both on a comparable basis.

Kering, a global luxury group, manages the development of a series of renowned brands in fashion, leather goods and jewellery: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin and Ginori 1735, as well as Kering Eyewear and Kering Beauté.

Compared to 2023, recurring operating income of €2.6 billion (~$2.84 billion) in 2024 was down 46 per cent, reflecting a recurring operating margin of 14.9 per cent in 2024 versus 24.3 per cent in 2023. Net income attributable to the Group amounted to €1.1 billion (~$1.20 billion), and recurring net income attributable to the Group stood at €1.3 billion.

As of 2024, Kering has 47,000 employees.

ALCHEMPro News Desk (WE SB)

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