LVMH first-quarter revenue drops 3%, missing analyst expectations due to weakened sales globally.

From Yahoo Finance: 2025-04-14 11:49:00

LVMH’s first-quarter revenue dropped by 3%, missing analyst expectations of 2% growth due to weakened sales in the U.S. and China. The company’s New York-listed depositary receipts fell by 7.5% following the results release. Trade tensions and global market fluctuations are complicating business operations for the luxury group.

LVMH’s finance chief, Cecile Cabanis, noted that high-end leather goods in the U.S. were performing well, but Sephora, cognac, and beauty products saw a decline. The fashion and leather goods division globally posted a 5% decrease in sales, impacting overall profit. Concerns about demand recovery and potential earnings cuts are growing.

With fears of a U.S. recession, Europe’s luxury sector faces a challenging outlook, as sales in the U.S. market fell by 3% and by 11% in Asia excluding Japan. The luxury industry, with its pricing power, is better positioned to mitigate the impact of Trump’s tariffs. LVMH is considering increasing production in the U.S.

Amidst challenges, LVMH has faced issues with production at its Texas facility. Sales in the wines and spirits division, which includes Krug champagne and Hennessy cognac, declined by 9%. The company is the only major European luxury group to produce locally in the U.S. Louis Vuitton remains a strong performer for the brand.



Read more at Yahoo Finance: LVMH misses sales forecast as core business slumps in first quarter