LVMH Moët Hennessy Louis Vuitton, the world's leading luxury goods conglomerate, reported a 4% decrease in second-quarter revenue for 2025, totaling €19.5 billion. This decline was primarily driven by a 9% drop in sales within its Fashion & Leather Goods division, which includes brands such as Louis Vuitton and Dior. The downturn reflects ongoing challenges in the luxury market, including subdued demand from key consumer markets and economic uncertainties.
Despite the revenue decline, LVMH's operating profit for the first half of 2025 stood at €9 billion, maintaining an operating margin of 22.6%. The company's net profit for the same period was €5.7 billion. These figures indicate the group's resilience in navigating a complex economic environment. CFO Cécile Cabanis expressed cautious optimism, highlighting potential positive developments from ongoing EU-U.S. trade negotiations and noting that several LVMH brands retain pricing power, which could help mitigate future challenges.
In response to market dynamics, LVMH announced plans to open a new Louis Vuitton factory in Texas by 2027. This strategic move aims to strengthen the company's presence in the U.S. market and potentially offset the impact of trade tensions. The luxury conglomerate continues to focus on innovation and brand desirability to reinforce its leadership position in the luxury goods sector.