LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury goods conglomerate, reported a 3% decline in first-quarter sales to 20.3 billion euros ($23 billion), missing analyst expectations and highlighting continued challenges in the global luxury market. The Paris-based group’s performance was particularly affected by varying results across Asian markets. Japan experienced a notable downturn compared to Q1 2024, when the market had benefited from “strong growth in Chinese consumer spending” in the country. Meanwhile, LVMH reported that “the rest of Asia saw trends comparable to 2024,” suggesting a stabilization rather than growth in key markets like China and South Korea. Weaker China demand hits LVMH’s Wines & Spirits sales China’s luxury consumption continues to face headwinds, with LVMH specifically noting that its Cognac business was “held back by weaker demand in China and the United States” within its Wines & Spirits division, which saw organic revenue decline 9%. Despite these challenges, LVMH continues to invest in Asian markets through strategic brand activations. Loro Piana celebrated its centenary and “its ties with China” with an exhibition at Shanghai’s Museum of Art Pudong. Bulgari showcased its Serpenti collection through “immersive art exhibitions in Shanghai and Seoul,” while Christian Dior continued its Designer of Dreams exhibition with “a stopover in Seoul in April.” Fashion & Leather Goods division posts 5% revenue decline The conglomerate’s flagship Fashion & Leather Goods division, which includes Louis Vuitton and Dior and accounts for nearly half of group sales, posted a particularly disappointing 5% revenue decline. The division showed “good resilience” but couldn’t match the high basis of comparison from last year when Japan had experienced exceptional growth. Bernard Arnault’s luxury empire maintains a cautious but optimistic outlook, stating it “remains both vigilant and confident at the start of the year” despite the “disrupted geopolitical and economic environment.” The company emphasized its continued focus on innovation and selective distribution as it navigates market uncertainties. The results confirm broader concerns about a sector-wide slowdown in luxury spending, especially as recession fears in the U.S. rise following President Trump’s recent tariff announcements, which could further impact global luxury consumption patterns.
