On July 24, LVMH Moët Hennessy Louis Vuitton announced its consolidated financial results for the first half of 2025. The group reported revenue of €39.8 billion, a 4% year-over-year decline, operating profit of €9.0 billion (down 15%), and net profit of €5.7 billion (down 22%), marking a decline across all key financial indicators.
The spotlight was on the group’s largest revenue driver—its Fashion & Leather Goods division. Sales in the segment fell 9% to €19.1 billion, compared to €20.8 billion in the same period of the previous year. Operating profit also dropped by 18% to €6.6 billion, significantly impacting the group’s overall performance. The division, which includes flagship brands like Louis Vuitton and Dior, reflects a broader deceleration in global luxury demand.
Japan saw a notable decline due to a sharp pullback in tourist consumption, which had been boosted in 2024 by a weak yen. Consumer momentum also slowed across Asia, including China. Meanwhile, local demand in Europe and the U.S. remained relatively stable, allowing the division to maintain a high operating margin.
Among brands, Louis Vuitton continued to lead the segment, while key labels such as Dior, Celine, Givenchy, and Loro Piana faced headwinds from declining tourist sales and shifting consumer sentiment toward high-priced items.
The Perfumes & Cosmetics division maintained flat year-over-year results with revenue at €4.082 billion and an organic growth rate of ±0%. Fragrances such as Dior’s Sauvage, J’adore, and Dior Homme performed strongly, supported by skincare and new launches from Guerlain, Givenchy, and Maison Francis Kurkdjian.
In Watches & Jewelry, revenue held steady at €5.09 billion, driven by Tiffany & Co.’s expansion of its new flagship store concept, “The Landmark.” Bvlgari’s Serpenti line and its new high jewelry collection, Polychroma, also contributed to a stronger brand narrative.
Selective Retailing saw solid growth led by Sephora, which recorded €8.62 billion in revenue (organic growth of +2%) and a 12% increase in operating profit to €876 million. The success was attributed to Sephora’s omnichannel strategy and its growing base of loyal customers.
In the earnings announcement, Chairman and CEO Bernard Arnault stated, “LVMH demonstrated resilience in a challenging environment. This performance reflects the strength of our iconic brands and their unwavering commitment to craftsmanship, paired with constant innovation. Even amid uncertainty, we remain guided by our long-term vision as a family-run company and our relentless pursuit of quality and desirability.”
Meanwhile, at Dior, Jonathan Anderson was appointed as the new creative director. His debut menswear collection, unveiled in June at Les Invalides in Paris, was met with critical acclaim and signaled renewed momentum for the brand.
However, a shadow was cast over the group with Loro Piana being placed under court-appointed judicial administration for one year by a Milan court due to labor condition issues. This echoes a past case involving Christian Dior and raises concerns over ethical governance within the group—especially important in a luxury industry where trust and credibility are paramount.
While maintaining a cautious outlook for the full year, LVMH reiterated its commitment to “exceptional product quality, innovation, and brand desirability,” with particular anticipation building around upcoming collections from Loewe and Dior in October.
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