Summary
- LVMH missed analysts’ expectations in the first half of 2025, with net profit falling 22% and overall revenue down 4% year-over-year, indicating a continued global luxury sector slowdown exacerbated by declining sales in China, negative publicity, and consumer confidence issues.
Doubling down on what has already been a difficult year for the luxury sector, LVMH missed analysts’ expectations, per the group’s earnings report for the first half of 2025, ending on June 30.
Despite net profit falling 22% in the first half of 2025, the luxury conglomerate shared that it “showed good resilience and maintained its powerful innovative momentum despite a disrupted geopolitical and economic environment,” in a statement.
Overall revenue fell 4% year-over-year from €46.8 billion to €39.8 billion, and LVMH’s largest division, Fashion and Leather Goods, took the biggest hit with sales falling by 9% from €20.8 billion in the first half of 2024 to €19.1 billion in 2025.
Parent to some of the world’s largest luxury labels like Louis Vuitton, Dior, Fendi, Givenchy, Loro Piana, and Celine, the company’s performance lifted briefly post-pandemic, but has since fallen along with its competitors Kering and OTB Group. The decline in luxury spending has become most prominent in China; however, the slowdown is prominent on a global scale. Following a series of disappointing earnings reports, Hermès dethroned LVMH as the most valuable luxury stock in the world when its first quarter showed a 7.8% decline in share value.
The group has had rough publicity this year, with its growing labor exploitation scandal now affecting Loro Piana, data breaches affecting Louis Vuitton in Hong Kong and the UK, and a cultural appropriation controversy at Dior. In addition to these concerns, consumers have reacted negatively to luxury price hikes, and lower consumer confidence continues to hold sales back.
For the last year, LVMH’s performance has served as a litmus test for the wider luxury sector, and the latest results indicate that the slowdown isn’t picking up just yet.
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