The Irish division of Louis Vuitton, the globally leading luxury brand, set a new business record last year, with a 14% surge in pretax profits, reaching €10.96 million. According to recent financial statements, with increased purchasing of Louis Vuitton products by Irish consumers, the brand saw a 21% rise in its revenues at Louis Vuitton Ireland Ltd, reaching an all-time high of €36.49 million up from €30.2 million.
Despite having just one physical store located at Grafton Street’s Brown Thomas in Dublin, online sales also contribute to the brand’s earnings. Sales at the Grafton Street branch surged 33%, going up from €23.7 million to €31.54 million. However, the company experienced a 24% decline in online sales, from €6.5 million to €4.95 million.
Famous for its extravagant handbags, such as the €38,500 City Steamer MM bag and the €20,000 Petite Malle CM bag, the brand hosts a high-end array of leather goods, accessories, watches, fragrances, shoes and clothing. With robust profits, the company plans to distribute a dividend of €9.5 million in 2024, following a payout of €8.4 million in 2023 and €7.04 million in 2022.
Louis Vuitton’s directors maintained that the brand is committed to expanding its customer networks while keeping a tight rein on expenditures. The year 2023 was marked by continuous economic instability, with retail being particularly impacted by increases in inflation and interest rates. Notwithstanding the challenges, the company remains vigilant of ongoing industry difficulties and the broader economy, while still boasting impressive strength and growth in the double digits.
Louis Vuitton branded items, adored by celebrities and pop icons including Taylor Swift, Justin Bieber, and Jennifer Lopez, is an integral part of the lavish LVMH Moet Hennessy brand portfolio, a French-based multinational corporation listed on the stock market worth billions of euros.
Recently, the firm’s Irish branch reported post-tax earnings of €9.53 million, a figure reached after accounting for a €1.43 million corporate tax bill. The staffing level rose from 15 to 24 during the period, triggering an increase in payroll expenses from €926,000 to €1.36 million. In addition, at the end of December, the firm’s equity stood at €10.66 million, incorporating accumulated profits worth €9.53 million.
According to the directors, maintaining the brand’s standing amidst other strong market players represents a critical commercial risk.