We expected better, and, undoubtedly, given the premises, it could have been better. The market and analysts were disappointed with LVMH’s performance in the first quarter 2025. The world’s largest luxury group ended the first three months with sales of 20.3 billion euro, equivalent to an overall decline of 3% – at constant scope and currency – compared to the same period in 2024. The Fashion & Leathergoods Division, which accounts for half of the entire group’s sales, lost more: -5%.
It could have been better
LVMH returns to decline after +1% sales recorded in the fourth quarter of 2024. Analysts’ expectations estimated revenues at +2% in the first quarter of 2025, according to VisibleAlpha’s consensus estimates, cited by Reuters. LVMH says it showed “good resilience“, but in fact sales fell 2% at current exchange rates, and, most importantly, the Fashion & Leathergoods Division was not the driving force we had become accustomed to seeing. In fact, it posted a 5% drop in sales, far worse than analysts’ expectations that pointed to a stable performance. For LVMH, this was due to the fact that there had been a boost from Japan in the first three months of 2024. Only the Wine & Spirits Division did worse: -9%.
Japanese Syndrome
Geographically, always according to LVMH, “Europe once again posted growth at constant scope and currency. The United States declined slightly, despite a good performance in fashion and leather goods and watches and jewelry. Japan declined from the first quarter of 2024, which had been driven by strong growth in Chinese consumer spending in the country. The rest of Asia experienced comparable trends to 2024″.
Concerns confirmed
LVMH’s numbers seem to confirm investors’ concerns about the luxury sector. Fears fueled by a still stagnant Chinese market and a slowing U.S. market, which had driven consumption in recent quarters.
Image from louisvuitton.com
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