LVMH Sales Dip 2% in Q1 as U.S. Sees ‘Slight Decline’

LVMH Moët Hennessy Louis Vuitton reported Monday that first-quarter sales dipped 2 percent to 20.31 billion euros, trumpeting its resilience “despite a disrupted geopolitical and economic environment.”

Stripping out the impact of currency and changes in scope, the decline stood at 3 percent.

The numbers seemed to confirm investor concern that America – which had been driving luxury consumption in recent quarters – is slowing down.

In a release issued Monday after the close of trading on the Paris bourse, LVMH said Europe achieved growth in the period, while the “United States saw a slight decline, despite a good performance in fashion and leather goods and in watches and jewelry.”

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By division, organic revenues fell 9 percent in wines and spirits, 5 percent in fashion and leather goods, 1 percent in selective retailing, and 1 percent in perfumes and cosmetics. Sales were flat at the watches and jewelry unit.

Equity analysts at Barclays had forecast that overall revenues would come in flat at 21.2 billion euros, with fashion and leather goods falling 1 percent “considering the challenging macro environment,” and “tough comps.”

The French luxury giant recorded a 1 percent uptick in organic revenues in the fourth quarter of 2024, and a 1 percent drop at its fashion and leather goods business unit.

LVMH’s chief financial officer Cécile Cabanis is to host a call with press and analysts, where the Trump administration’s tariffs are sure to be a hot topic.

However, in terms of tariff risk, LVMH is considered more insulated than its peers given high gross margins in its fashion and leather goods, low exposure to the U.S. market, and that part of its bag lines are manufactured in America, according to Barclays.

LVMH is the first big European luxury player to report first-quarter results, with Hermès International scheduled for Thursday and Kering, parent of Gucci and Saint Laurent, on April 23. The annual results presentation of Swiss group Richemont is expected on May 16.