On April 13, French luxury conglomerate LVMH Moët Hennessy Louis Vuitton announced its financial results for the first quarter of fiscal year 2025. The group reported revenue of €20.3 billion, marking a 2% decline compared to the same period the previous year. On an organic basis, excluding currency and structural changes, revenue fell by 3%, coming in below analyst expectations.
By business group, Wines & Spirits declined by 9%, Fashion & Leather Goods by 5%, Selective Retailing and Perfumes & Cosmetics by 1% each, while Watches & Jewelry remained flat. In its financial statement, LVMH stated that it “demonstrated resilience despite a disrupted geopolitical and economic environment.”
Murakami Collaboration Sold Out, Uneven Results Across Fashion Division
In the Fashion & Leather Goods division, a long-anticipated collaboration between Louis Vuitton and Takashi Murakami—reuniting after 20 years—proved a major success. The limited-edition multicolor reinterpretation of the monogram bags sold out completely, backed by a high-profile campaign featuring Zendaya and a series of global pop-up activations.
Additionally, Louis Vuitton’s new Biker Bag, as well as Dior’s Toujours and D-Journey bags, reportedly performed well in the quarter.
Regarding brand-by-brand performance, LVMH’s Chief Financial Officer Cécile Cabanis revealed that while Louis Vuitton and Loro Piana slightly outperformed the division average, Dior lagged “slightly below average.”
U.S. Market Stable for Fashion, but Pressure on Spirits and Cosmetics
On the U.S. market, Cabanis commented, “The group’s American clientele remains well oriented toward fashion and leather goods,” indicating that demand for fashion-related products showed no major shift during the quarter.
However, revenue from Wines & Spirits—particularly cognac—and from Perfumes & Cosmetics declined. The dip was attributed to intensified price competition from Amazon, which affected Sephora’s online sales momentum. In addition, DFS faced headwinds due to reduced foot traffic in Hong Kong and Macau, as well as the phased closure of its Fondaco dei Tedeschi store in Venice.
In Asia, revenue dropped 11% outside Japan and declined 1% in Japan itself, largely due to a reversal of the previous year’s surge from inbound Chinese tourism.
U.S. Production Expansion Not a Strategic Shift
Regarding U.S. manufacturing strategy, Cabanis stated, “We are not contemplating to change radically,” affirming that the group does not foresee any drastic shifts in direction. She added, “Shifting to more U.S. production of luxury goods isn’t something that can be done overnight,” signaling a measured approach with gradual expansion rather than rapid restructuring.
Currently, Louis Vuitton operates three manufacturing facilities in the United States, supplying about one-third of local market demand. Tiffany & Co., too, is largely able to supply its U.S. stores through domestic production. Its iconic lines—T, Lock, Hardwear, and Knot—remain strong performers, and the newest flagship store on Milan’s Via Montenapoleone has reportedly been well received.
LVMH has stated its commitment to prepare to emerge stronger when demand rebounds and reaffirmed that its 2025 strategy will continue to focus on innovation and selective investment.
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