LVMH Reports Decline in First-Half Performance — Weak Asia and Cooling Demand Hit Luxury Giant

TradingKey - LVMH’s half-year financial report shows a decline in revenue and profits for the first six months of 2025, as soft demand in Asia and a slowdown in high-end consumer spending weighed on key business segments, particularly Fashion & Leather Goods.

For the first half of the year, the group’s revenue fell to 39.8 billion euros, down from 42.0 billion euros in the same period last year.Recurring operating profit dropped to 9.0 billion euros, compared to 11.6 billion euros a year earlier. Net profit attributable to shareholders declined 22%, from 8.5 billion euros to 5.7 billion euros.

LVMH expressed confidence in its long-term outlook but acknowledged that geopolitical tensions and economic uncertainty continue to cloud the global environment. The group said it will remain focused on brand desirability and product quality.

Sales were supported by stable domestic demand in Europe and the United States. However, Japan saw a decline following an unusually strong performance last year driven by tourism. Trends in other parts of Asia remained largely flat.

The Fashion & Leather Goods division, LVMH’s largest business segment, reported lower revenue and profit, which the company attributed to a high base of comparison and reduced tourist spending. The Wines & Spirits division also declined, primarily due to weak cognac demand in both the U.S. and China.

LVMH’s Chief Financial Officer noted: The current geopolitical and economic environment remains uncertain, prompting us to re-evaluate our operations and examine how we can further improve efficiency.

Cécile Cabanis, Chief Financial Officer, said during the earnings call that she believes trade negotiations between the European Union and the Trump administration will soon make positive progress.

Regarding market expectations of a 15% broad-based tariff on U.S. imports from Europe, she noted that this outcome would be "overall beneficial for stabilizing customer sentiment."