Media, luxury and education
Constant currency growth
Growth measured as if exchange rates had not changed, to show the real business trend.
Facts checked against sources onWhat does Constant currency growth mean?
Constant currency growth restates this year's sales at last year's exchange rates, so that currency swings do not hide or exaggerate how the business really did. Companies selling in many countries often report it next to reported growth. Example: a European luxury brand sells 100 million yen of goods in Japan in both years. If the yen weakens from 150 to 170 per euro, reported sales fall from about 667,000 to about 588,000 euros, a drop of about 12 percent, but constant currency growth is 0 percent. Organic growth goes one step further and also removes the effect of acquisitions and disposals.
Where does it come up in case interview prep?
- Macro forces that move casesLesson in Markets and economies: the world a case lives in
- Real growth, people and incomeLesson in Markets and economies: the world a case lives in
- Africa and Latin America for case solversLesson in Regions for case solvers: the big markets of the world
- Reading a real results release: Inditex, FY2025Lesson in Reading a business through its numbers: the three statements, cash and value
- Luxury and fashion economics: channels, markdowns, and currencyLesson in Luxury and fashion
- Luxury players, markets, trends, and how to crack the casesLesson in Luxury and fashion
- Beauty players, trends 2024 to 2026, and how to crack the casesLesson in Beauty and personal care: cosmetics, skincare, haircare and fragrance
Related terms
- Like-for-like sales (LFL)Sales growth from stores open in both periods, leaving out new and closed stores.
- CAGR (compound annual growth rate)The steady yearly growth rate that links a start value to an end value.
- Travel retailShops in airports, on aircraft and at borders, often selling duty free.
- SVOD and AVODStreaming paid for by subscription (SVOD) versus paid for by advertising (AVOD).
- Fill rate (advertising)The share of available ad slots that are actually sold and shown.
- Content amortizationSpreading the cost of films and shows as an expense over the years they are expected to earn.
- ARPPU (average revenue per paying user)Revenue divided by only the users who pay, not all users.
- Payer conversionThe share of users who pay for something in a period.
Learn it in context
See Constant currency growth at work in a lesson from Markets and economies: the world a case lives in, with checks as you go.
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