The º£½ÇÊÓƵ division of luxury brand Louis Vuitton has experienced a significant downturn in sales and profits during 2024, with nearly £90m slashed from its sales figures.
In the latest financial year, the esteemed fashion label recorded sales of £488.2m, a notable decrease from the £575.2m reported in 2023, as reported by .
According to newly submitted accounts at Companies House, the company's pre-tax profit also fell sharply from £132.1m to £84.3m within the same timeframe.
This marks the first revenue decline for the º£½ÇÊÓƵ branch of Louis Vuitton since 2020 when sales dropped from £483.3m to £371.7m.
Part of the LVMH group, which includes other prestigious brands such as Dior and Tiffany & Co.
Louis Vuitton 'showing great strength'
A board-approved statement read: "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."
It continued: "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."
The statement added: "2024 was a year of continued economic and political volatility."
Highlighting the impact of inflation and interest rates on consumer expenditure, it noted: "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 prospects, luxury fashion house Louis Vuitton expressed optimism with the statement: "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."
The brand outlined its growth strategy, focusing on organic expansion, noting: "Our strategy prioritises organic growth, driven by providing exceptional services to existing clients as well as attracting new clients."
To support this strategy, the fashion brand is committed to nurturing strong customer relations, stating: "To do this, we continue developing and maintaining strong client relationships."
º£½ÇÊÓƵ retail sector sees a downturn
Louis Vuitton joins a succession of high-profile labels encountering slower sales.
Posh bag enterprise Radley London is facing a downturn in revenue and plans to ratchet up its prices stateside due to the ongoing volatility associated with President Donald Trump's tariff policies.
May saw eyewear giant Ray-Ban's parent company raise alarms about its 2024 performance after witnessing a slump in º£½ÇÊÓƵ profits and sales.
Additionally, the British operation of high-fashion retailer Michael Kors publicized intentions to tweak its pricing strategy in response to a notable decline in sales figures.
