Luxury goods conglomerate LVMH saw revenue and profit drop last half, with its fashion and alcoholic beverage segments leading these declines.
Revenue was EU€39.81 billion, falling 4% year-over-year in line with Visible Alpha estimates. Net profit dropped by 22% to €5.70 billion.
“LVMH showed solidity in the current context. We owe this to the power of our iconic brands and their boundless capacity for innovation while remaining true to their culture of incomparable artisanal craftsmanship,” said LVMH CEO Bernard Arnault.
“We head into the second half of the year with great vigilance, and I am confident in LVMH’s tremendous long-term potential and the commitment of our teams to further reinforce the Group’s leadership position in luxury goods.”
Reported revenue declined across all segments except Selective Retailing, which remained flat. Fashion & Leather Goods, its largest segment, posted an 8% year-over-year fall to EU€19.12 billion.
Wines & Spirits revenue also dropped by 8% year-over-year to €2.59 billion. Its profit from recurring operations plummeted by 33%, the largest of any segment, which the company attributed to trade tensions in the United States and China and weak demand for cognac.
Profit fell across segments, apart from Selective Retailing’s 12% increase. Fashion & Leather Goods reported the second-highest drop in profit at 18%.
Demand continued to grow in Europe last half, the company said, while U.S. demand remained stable. Sales in Japan fell, after a strong first half of 2024 driven by tourist spending.
Luxury goods sales increased by 0.2% in 2025's first half, but are set to drop by around 1.7% in H2, according to HSBC projections.
LVMH did not release full company-wide guidance, but said brands like Louis Vuitton and Christian Dior would continue to focus on major store openings in the next half.
LVMH’s (EPA: MC) share price closed at €470.25, down from its previous close at €479.95. Its market capitalisation is €234.50 billion.
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