LVMH Shares Disappointing Q1 2025 Financial Results, Sales Fall 3% to €20.3 Billion EUR
Luxury conglomerate LVMH shared its financial results for the first quarter of 2025 on Monday, revealing a 3% decrease in sales to €20.3 billion EUR for the three months ending March 31. This news comes as a disappointment to analysts, who had expected a 2% growth for the company.
The fashion and leather goods division, home to renowned brands such as Louis Vuitton, LOEWE, Dior, and Fendi, saw a 5% decline in sales. This was significantly lower than the predicted 0.55% decrease, and makes up 75% of LVMH’s overall profit. Other divisions also saw a decline, with wine and spirits dropping by 9% and perfume and cosmetics both decreasing by 1%. The only division to remain steady was watches and jewelry.
The sluggish numbers can be attributed to a combination of factors, including post-pandemic spending fatigue, high inflation rates, and a slowing economy. In addition, the ongoing debt crisis and real estate crash in China, a key market for luxury brands, have also contributed to the decline. In the US, President Donald Trump’s tariff announcements have dashed any hopes of increased luxury spending from American shoppers this year.
According to analysts at RBC, these results are likely to raise concerns about the recovery of underlying demand, and the potential for additional earnings cuts due to tariff-related risks. To see the full financial report for Q1 2025, click here.
