Abstract
LVMH’s fashion and leather goods sales fell 9 percent in the second quarter, just missing analyst estimates as the Louis Vuitton and Dior owner struggles to bounce back from a deepening industry slump.
Group sales fell 4 percent, following a 3 percent slide the previous quarter. Sales improved in the retail division powered by Sephora, growing 4 percent. Beauty sales grew 1 percent, while watches and jewelry were flat. Drinks revenue continued to decline, albeit more slowly, falling 4 percent compared to last quarter’s 9 percent drop.
First-half profit fell 15 percent to €9.01 billion. Efforts to preserve margins by reining in costs include scrutinizing fashion show budgets to reduce spending on elements that don’t enhance creativity or client experience, chief financial officer Cécile Cabanis said.
After flying high in the wake of the coronavirus pandemic, LVMH has been hard hit by slowing economic growth, including in the key Chinese market, as well as the impact of lingering inflation and the return of competing spending categories like travel, restaurants and wellness. Customers have also balked at steep price hikes and shown their fatigue with mega-brand merch by defecting to more subtle, craftsmanship-focused labels like Hermès or else trendier niche luxury brands like Miu Miu.
Group sales fell 4 percent, following a 3 percent slide the previous quarter. Sales improved in the retail division powered by Sephora, growing 4 percent. Beauty sales grew 1 percent, while watches and jewelry were flat. Drinks revenue continued to decline, albeit more slowly, falling 4 percent compared to last quarter’s 9 percent drop.
First-half profit fell 15 percent to €9.01 billion. Efforts to preserve margins by reining in costs include scrutinizing fashion show budgets to reduce spending on elements that don’t enhance creativity or client experience, chief financial officer Cécile Cabanis said.
After flying high in the wake of the coronavirus pandemic, LVMH has been hard hit by slowing economic growth, including in the key Chinese market, as well as the impact of lingering inflation and the return of competing spending categories like travel, restaurants and wellness. Customers have also balked at steep price hikes and shown their fatigue with mega-brand merch by defecting to more subtle, craftsmanship-focused labels like Hermès or else trendier niche luxury brands like Miu Miu.
| Original language | American English |
|---|---|
| Publisher | The Newscasters' Studio |
| Media of output | Online |
| Size | 00:17:39 |
| State | Published - Jul 27 2025 |