LVMH misses 1Q revenue expectations amid trade tensions
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The news: LVMH posted first-quarter revenue below analysts’ expectations amid a “disrupted” geopolitical and economic environment where trade tensions and slowing demand are weighing on the luxury sector.expe
The numbers: The French luxury group reported revenue of €20.31 billion ($36.5 billion) for the first three months of 2025, down 3% organically from the prior-year period. Its fashion and leather goods division, which includes Louis Vuitton and Dior, logged sales of €10.11 billion, down 5% on an organic basis.
Analysts had forecast group revenue of €21.21 billion and €10.57 billion for the fashion and leather goods division, according to Visible Alpha estimates.
All divisions reported either flat or negative growth: wine and spirits declined 9%, perfume and cosmetics and selective retailing each fell 1%, while watches and jewellery were flat.
The US, which made up 24% of LVMH’s revenue in the quarter, fell 3%, while the region including China slid 11%, more than double estimates.
The fashion giant reported earnings after the close, it’s American depositary receipts dropped as much as 9% in New York after the results.
The context: The luxury sector is grappling with weak demand amid rising US-EU tariffs and sluggish Chinese spending.
The outlook has further darkened since US President Donald Trump imposed 10% tariffs on European Union imports for 90 days, after threatening even higher levies. Analysts have warned that tariff turmoil will hit client wealth.
