In the first quarter of 2025, the luxury group LVMH showed signs of solidity, despite a global context marked by geopolitical and economic uncertainties. The giant led by Bernard Arnault closed the period with a turnover of 20,3 billion euros, slightly down 2% compared to approximately 20,7 billion in the same quarter of 2024. A stable performance, but below analysts' expectations: Barclays, for example, expected revenues of around 21,2 billion.
Contrasting geographic trends
Geographically, Europe continued to show steady growth, while the United States saw a slight decline, despite the good performance of the fashion and jewelry segments. Japan recorded a slowdown, due to the comparison with a particularly lively 2024 thanks to Chinese consumption in the country. In the rest of Asia, the trend remained substantially in line with the previous year.
Wines and spirits in difficulty, fashion holds up
Among the most penalized divisions, the one dedicated to wines and spirits stands out, which recorded an 8% decrease in revenue, stopping at 1,3 billion euros. The drop in demand for champagne weighed particularly heavily, despite the renewed presence of Moët & Chandon in Formula 1. Cognac, represented by brands such as Hennessy, also suffered from the slowdown in demand in China and the United States. On the other hand, the start of the year for Provençal rosé wines was positive.
The group's core business, fashion and leather goods, recorded a 4% decline with revenues of 10,1 billion euros. According to management, the comparison with the previous year is influenced by strong demand in Japan in the first quarter of 2024, which had supported the results. Among the highlights of the period was the relaunch of the collaboration between Louis Vuitton and Takashi Murakami, which was very successful. The brand also previewed its cosmetics line and took an active part in the Formula 1 season as a main partner in Australia.
Dior also made a good debut with new leather goods models. International exhibitions and celebrations such as Fendi’s centenary have helped maintain the brands’ high visibility. The group has also welcomed new creative directors, whose collections will debut soon.
Perfumes, watches and retail: signs of stability
The Perfumes and Cosmetics division remained stable, with revenues of 2,17 billion euros, supported by the good performance of brands such as Dior, Guerlain and Maison Francis Kurkdjian, which launched the new fragrance “Kurky”.
Sales in the watches and jewelry category grew by 1% to $2,48 billion. Tiffany & Co. continued to expand its most iconic collections, also launching a new store format inspired by its historic New York location. Bulgari and Chaumet also posted positive results. In the watchmaking sector, Tag Heuer, Hublot and Zenith presented new products in New York and Paris during LVMH Watch Week, with Tag Heuer returning to its role as the official timekeeper of F1.
Selective retailing: Sephora drives the sector
In selective retail, revenues remained stable at €4,19 billion. Sephora confirmed its positive trend, especially in North America. DFS continues to suffer from the difficulties of the international context, while Le Bon Marché recorded a good start to the year thanks to a differentiation strategy and a distinctive events program. LVMH also strengthened the governance of its department stores, with a new structure shared between La Samaritaine and Le Bon Marché.
Perspectives
Despite the uncertainties on the global front, the group says it is confident and continues with its growth strategy, focusing on innovation, quality and targeted investments. "We continue to rely on the talent of our teams and the diversification of our activities, with a well-balanced geographical presence," the management said, reiterating the objective of further consolidating its global leadership in the luxury sector.
