LVMH faces a tense start to the year: what should we remember?
The first quarter of 2025 has not been kind to the world leader in luxury goods, LVMH. While the fundamentals remain solid, certain signals are unmistakable: a -2% drop in sales, and a sales geography that illustrates the growing imbalances in the global market.
Europe saves the day, Asia worries
It’s on the Old Continent that LVMH can still breathe. With a modest rise of +2%, Europe is relatively resilient. This is in stark contrast toAsia (excluding Japan), which is bearing the full brunt of the slowdown in Chinese consumption, with a severe decline of -11%. A reminder that dependence on the Asian market remains an Achilles heel.
United States in retreat, but still strategic
Despite a 3% fall, the United States still accounts for 24% of the Group’s global sales. But customs tensions and economic uncertainties are taking their toll. This relative stability masks a worrying erosion in certain consumer segments.
Fashion and leather goods under pressure
LVMH’s flagship division, which accounts for almost half of sales, fell by -4% to 10.1 billion euros. Japan’s exceptional rebound in 2024 was not repeated. A signal to watch out for for Louis Vuitton and Dior, the two locomotives of this division.
Wines, spirits and discreet luxury: disillusionment
With sales of cognac and other spirits down 8%, this historically prestigious category has been dragged down. Liquid luxury, discreet but strategic, also seems to be a victim of the economic climate.
Luxury under control… but under surveillance
Between European resilience, Asian retreat and creative expectations around new directions at Loewe, Dior and Fendi, LVMH is playing a delicate game. The group claims to be “confident”, but the time has come for realism.
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