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On the heels of fashion month, French conglomerate LVMH confirmed what the industry has been feeling for months: The luxury sector is slowing. But during its earnings call for the third quarter of 2024, the owner of Dior and Louis Vuitton shared a bright spot amid an overall decline: fragrance. For the first nine months of 2024, LVMH reported a 5% increase in revenue in its perfume and cosmetics division compared to the same period in 2023, reaching €6.1 billion ($6.6 billion) in revenue.
But the fragrance boom may not hold forever. LVMH reported a 3% increase in revenue for perfume and cosmetics for the third quarter of 2024, but that figure failed to maintain the momentum of Q1 2024, when it saw a 7% increase compared to Q1 2023. In the second quarter of 2024, LVMH reached a 4% growth in perfume and cosmetics revenue compared to the same quarter last year.
For the third quarter of 2024, LVMH reported that Dior Sauvage remained a strong seller for the conglomerate, two years after the domestic violence trial for its longtime ambassador, Johnny Depp, became a media sensation. In August, LVMH launched a water-based version of the popular male-targeted scent. Dior also rolled out the first campaign starring Rihanna as the new ambassador for its female-targeted perfume J’adore in August. LVMH has continued to boost the fragrance offerings at its other fashion houses throughout 2024: In May, Fendi announced its expansion into fine fragrance with a launch of seven scents retailing for $330, tapping into the demand for increasingly high-end perfumes. In April, Celine launched its Zouzou scent along with hair perfume and scented body lotion versions of its existing perfumes. In addition to the beauty divisions of its fashion houses like Dior and Louis Vuitton, LVMH also owns fragrance brands such as Maison Francis Kurkdjian and Guerlain.
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