LVMH H1 revenues dip 4% to €39.8bn amid softened luxury demand

LVMH has reported a 4% fall in revenues to €39.8bn (£34.7bn) for the first half of 2025, which the luxury fashion group attributed to geopolitical and economic disruption.

Profits from recurring operations dropped 15% to €9bn (£7.8bn), representing an operating margin of 22.6%, while net profit attributable to the group stood at €5.7bn (£4.9bn) – 22% lower than the same period last year. Meanwhile, operating free cash flow saw a 29% uplift to €4bn (£3.4bn).

The luxury group said sales were stable in the US and grew in Europe, while Japan declined due to a prior-year comparison lifted by tourist spending. Trends in the rest of Asia were consistent with 2024, although local demand improved in the second quarter.

Fashion and leather goods recorded a drop in revenue and profit but remained resilient with local customers. Louis Vuitton cited “powerful creativity” through new product launches and brand experiences, including its Shanghai flagship concept, The Louis, and runway shows in Avignon and Paris.

Dior appointed Jonathan Anderson as creative director for haute couture, men’s and women’s collections. Fendi, Celine, Givenchy and Loewe also marked leadership transitions or milestone events.

LVMH’s performance in its perfumes and cosmetics category remained stable. Dior’s Sauvage continued as the world’s best-selling fragrance, supported by launches in fragrance, makeup and skincare. Guerlain, Givenchy and Maison Francis Kurkdjian also reported new product developments.

Meanwhile, selective retailing saw growth in both revenue and profit. Sephora delivered further market share gains and strengthened its omnichannel offering; DFS improved profitability through cost-cutting measures; and Le Bon Marché posted revenue growth supported by a differentiated product and cultural offering.

Bernard Arnault, chairman and chief executive of LVMH, said: “LVMH showed solidity in the current context. We owe this to the power of our iconic brands and their boundless capacity for innovation while remaining true to their culture of incomparable artisanal craftsmanship.

“We head into the second half of the year with great vigilance, and I am confident in LVMH’s tremendous long-term potential. Our main shared priority is about offering our customers the most exceptional products.”

The group said it remains confident despite prevailing global uncertainty and will continue focusing on the desirability of its brands, product quality and retail excellence.