LVMH Shows Lower Results for the First Half of 2025

French luxury goods giant LVMH posted sales of €39.8 billion for the first half of the year, down 4% from the previous year. This is a significant decline, but remains relatively in line with market expectations. Despite these figures, which speak volumes about the state of the luxury market, Bernard Arnault sought to reassure the press today, stating that "LVMH is demonstrating its resilience in the current environment. We owe this to the strength of our iconic brands such as Dior and Louis Vuitton and their ability to constantly reinvent themselves (...) Our shared priority is to offer our customers the most exceptional creations."

In terms of regions, Europe and the United States are the group's most stable markets, with local demand remaining strong. This interest shows that the group's strategy, based on strengthening the desirability of its brands and local roots, remains effective in a context of uncertainty. The Japanese market, on the other hand, is declining, a phenomenon observed in other European luxury houses. Several reasons are at play, in particular the waning of post-COVID sales euphoria and the fact that tourists were able to benefit for a significant period from a sharp decline in the value of the yen, the Japanese currency, which had encouraged luxury purchases. The current downturn illustrates Japanese consumers' increased sensitivity to the macroeconomic environment, an indicator that is often closely monitored to anticipate regional trends.

The results of the various businesses confirm certain trends, starting with the figures for wines and spirits, which continue to face difficulties in the cognac segment, now further threatened by US customs policy. Sales in this segment fell from $2.8 billion in the first half of last year to $2.5 billion this year, a decline of 8% on a reported basis, which could widen further depending on the Trump administration's decisions and their impact on the market, which will be announced on August 4. The perfume and cosmetics sector, as well as the watch and jewelry sector, performed better, posting a decline of only 1%.

This year has been full of highlights for the group: from the appointment of Jonathan Anderson as head of Dior to the celebrations of Fendi's centenary and the presentation of the first collections designed by Sarah Burton (Givenchy) and Michael Rider (Celine), LVMH has maintained a dynamic strategy. However, the group is currently dealing with one of its struggling brands: Loro Piana is facing bankruptcy proceedings following allegations of poor working conditions within its supply chain. This is a sensitive issue that could undermine the group's reputation for excellence.