LVMH posted a modest decline in both revenue and profit for the first half of 2025, as weakened luxury demand in Asia and a pullback in high-end spending hit the group’s core divisions, notably Fashion & Leather Goods.
The world’s leading luxury conglomerate came in below analyst forecasts for the first half of the year, with net profit dropping 22% year-on-year while total revenue contracted by 4%. This highlights ongoing softness across the global luxury sector, amplified by sluggish sales in China, damaging media coverage, and fragile consumer sentiment.
LVMH’s consolidated revenue fell to €39.8 billion compared to €46.8 billion a year prior, with the Fashion and Leather Goods division, its main earnings engine, seeing a 9% decrease—down from €20.8 billion in early 2024 to €19.1 billion in the same period in 2025.
The Board declared an interim dividend of €5.50 per share, scheduled for payout on December 4.
Regional trends were mixed. While local demand in key European and U.S. markets remained firm, sales in Japan retreated from last year’s unusually strong level, and the rest of Asia posted little change.
LVMH also faced a turbulent first half on the reputation front, with its labor practices at Loro Piana under scrutiny, high-profile data breaches impacting Louis Vuitton in Hong Kong and the UK, and Dior embroiled in a cultural appropriation dispute. Against this backdrop, customers have pushed back against luxury price increases, and persistently low consumer confidence has dampened sales further.
Despite the 22% decline in net profit, LVMH emphasized in its statement that it demonstrated good resilience and maintained its strong innovative drive, even amid a challenging geopolitical and economic landscape.
