Editor’s Note
LVMH’s first-half 2025 results show a broad decline, with revenue, operating profit, and net profit all falling year-on-year. This underscores the challenges facing the luxury sector in the current economic climate.
On July 24 (local time), LVMH Moët Hennessy Louis Vuitton announced its consolidated financial results for the first half of 2025 (January-June). Revenue was €39.8 billion (down 4% year-on-year), operating profit was €9.0 billion (down 15%), and net profit was €5.7 billion (down 22%). All key metrics fell below the previous year’s levels, resulting in a decline in both revenue and profit for the group.
The performance of the Fashion & Leather Goods segment, the group’s largest revenue source, was particularly noteworthy. Sales for the first half of 2025 were €19.1 billion, a 9% decrease from €20.8 billion in the same period last year. Operating profit also fell 18% to €6.6 billion, significantly impacting LVMH’s overall performance. This segment, which houses core brands like Louis Vuitton and Dior, clearly reflects the broader slowdown in demand spreading across the luxury industry.
In the Japanese market specifically, sales declined sharply due to a reversal of the tourism-driven consumption boom seen in 2024 against the backdrop of a weak yen. Consumer momentum has also slowed in Asia, including China. On the other hand, local demand in Europe and the United States has remained relatively stable, allowing the segment as a whole to maintain a high operating margin.
By brand, while Louis Vuitton remains the core of the segment, other major brands such as Dior, Celine, Givenchy, and Loro Piana are also facing challenges including reduced tourist spending and changing consumer attitudes towards price increases.
Meanwhile, the Perfumes & Cosmetics segment maintained performance at the previous year’s level. Revenue was €4.082 billion with an organic growth rate of ±0%. Dior fragrances such as “Sauvage,” “J’adore,” and “Dior Homme” performed solidly, while skincare and new products from Guerlain, Givenchy, and Maison Francis Kurkdjian also supported sales.
The Watches & Jewelry segment maintained revenue at €5.09 billion year-on-year, while Tiffany & Co. progressed with the rollout of its new store concept “The Landmark.” Bvlgari’s “Serpenti” and new high jewelry collection “Polychroma” also contributed to strengthening the brand’s universe.
The Selective Retailing segment saw Sephora continue on a growth trajectory. Revenue was €8.62 billion (organic growth +2%), and operating profit increased 12% to €876 million, benefiting from its omnichannel strategy and expansion of its loyal customer base.
Regarding the earnings announcement, Chairman and CEO Bernard Arnault stated:
At Dior, Jonathan Anderson has taken over as the new Creative Director. His first men’s collection, presented in June at the Invalides in Paris, was considered a great success, generating momentum for the brand’s future.
On the other hand, in the luxury business where trust is paramount, a decision by an Italian court in Milan to place Loro Piana under judicial administration for one year due to issues surrounding its working environment has cast a shadow over the group’s image. Christian Dior has faced similar measures in the past, putting the ethical governance of brands under scrutiny.
While LVMH has adopted a cautious stance regarding its full-year outlook, it stated it will “continue to focus on exceptional product quality and innovation, and enhancing brand desirability.” Attention is also turning to the upcoming new collection launches for Loewe and Dior in October.
