LVMH H1 Sales Drop 4% Amid Broad Luxury Slowdown

LVMH reported a 4% decline in revenue to approximately $46.7 billion (€39.8 billion) in the first half of 2025, with profits falling by around 15-22%, signaling a broader slowdown in the luxury market amidst ongoing economic and geopolitical uncertainties. The fashion and leather goods segment, which accounts for about half of LVMH's revenue, suffered the most significant drop, declining 8-12% due to weaker demand, particularly from affluent consumers and reduced tourist spending. In contrast, the watches and jewelry division experienced a slight decrease or remained stable in revenue, with iconic lines like Tiffany & Co. expanding their collections and new store concepts, though profitability was impacted by investments in store renovations and marketing. CEO Bernard Arnault emphasized the company's long-term vision and resilience despite the challenging environment, highlighting innovation and craftsmanship as key strengths. Other segments such as selective retailing, including Sephora, showed growth, partially offsetting declines elsewhere. LVMH provided no financial guidance for the rest of 2025, reflecting the uncertain market conditions ahead.