The LVMH group has just published its results for the first quarter of 2025 as the market closed. The global leader in luxury goods posted figures down 2% on reported figures and 3% on comparable figures to 20.3 billion euros.
The unstable geopolitical situation, the headache of customs duties, the unpredictability of the new US administration's economic agenda and the tensions on the global market generated by ongoing conflicts have certainly weighed on the results.
Some geographical areas that had helped to maintain solid performances in the past are now showing declining results. This is the case of Japan, which in recent months had been able to benefit from purchases by Chinese consumers on its soil.
One of the sectors most affected by the decline in sales is, unsurprisingly, Wines and Spirits, which totals 1.3 billion in sales. The division suffered a decline of 9% in the first quarter of 2025. This was due to several factors: the marketing of cognac faced obstacles imposed by the Chinese market, and that of champagne is going through a phase of normalisation after the euphoria of sales in the post-Covid years.
The Fashion and Leather Goods division, which generally leads the group in terms of sales, saw its results fall by 5% on a like-for-like basis, with sales totalling 10.1 billion. Turnover in the Perfumes and Cosmetics branch also fell by 1% to 2.1 billion euros.
With regard to selective distribution (duty free, Sephora), the analysis firms were particularly optimistic, and envisaged a jump of +5% in revenues, since the 2024 financial year saw a clear increase of +7%. But for this first quarter of 2025, performance has disappointed and shows a contraction of -1%.
Do LVMH's declining results herald a trend for an entire sector?
Bernstein has changed its analyses of the luxury market for this financial year. While it was expecting growth of +5%, it is now forecasting a decline of -2%.
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