Even LVMH isn’t immune: Sales slide amid luxury slowdown

LVMH, the owner of Louis Vuitton, Dior and Loewe to name a few, has today reported revenue was down by 3% to €20.3 billion (£17.4 billion) for the first quarter of 2025 - proving that even the cream of the luxury crop isn’t immune to a slowdown in spending.

Despite beating its profit forecast for 2024, the luxury conglomerate has missed the mark during its first quarter, falling short of expectations. However, as challenges face the global economy, LVMH showed "good resilience" during turbulent times.

Category breakdown:

• Fashion & Leather Goods, the group’s largest division, saw sales up by 5% to €10.1 billion (£8.69). Analysts had forecast a 1-2% dip.
• Watches & Jewellery, which includes brands such as Tiffany & Co., Hublot and Bvlgari, edged up by 1% to €2.48 billion (£2.16 billion).
• Perfumes & Cosmetics remained flat year-on-year, with revenue at €2.18 billion (£1.88 billion). However, Sephora delivered growth, particularly in North America, supported by an expanding retail footprint.

Geographically, Europe once again delivered growth on a constant consolidation scope and currency basis, offsetting weaker markets across the globe. The US posted a slight decline, meanwhile Japan underperformed compared to the year prior. The rest of Asia showed performance in line with 2024.

In the US, hopes that consumers would help lift luxury sales have faded. Recent tariff announcements by President Trump have created market uncertainty and hurt consumer confidence. At the same time, rising tensions between the US and China are adding pressure.

Despite persistent geopolitical instability and a complex macroeconomic backdrop, LVMH said it "remains both vigilant and confident at the start of the year". Its strategy is to focus on the development of its brands and invest in innovation and craftsmanship.