LVMH on Monday shared its monetary outcomes for the primary quarter of 2025, revealing that gross sales fell 3% to €20.3 billion EUR within the three months ending March 31. Per Reuters, the outcomes had been nicely under analysts’ expectations of two% progress, because the conglomerate struggles to buoy amid the continuing luxurious slowdown.
The group’s key vogue and leather-based items division, which homes heavyweight names like Louis Vuitton, LOEWE, Dior, and Fendi, noticed gross sales fall 5%. Notably, analysts forecasted a 0.55% decline within the class, which makes up 75% of LVMH’s total revenue. Elsewhere, the corporate’s wine and spirits division noticed gross sales decline by 9%, whereas fragrance and cosmetics each dropped by 1%. Watches and jewellery, in the meantime, remained fixed.
The reason for such sluggish numbers is one half attributable to post-pandemic spending fatigue, one other the product of excessive inflation charges, and a 3rd the product of a slowing financial system, mounting debt disaster, and actual property crash in China, a goal marketplace for high-end labels. Within the US, President Donald Trump’s tariff bulletins have eradicated any hopes that American consumers would spend extra on luxurious this 12 months.
“Investor considerations round underlying demand restoration are more likely to be amplified primarily based on these outcomes,” analysts at RBC advised Reuters, including that tariff-related dangers will seemingly contribute to extra earnings cuts.
See LVMH’s full monetary report for Q1 2025 right here.
