LVMH Q2 Sales Climb 19%, Offsetting Slower China

A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
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LVMH Q2 Sales Climb 19%, Offsetting Slower China

A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)

Sales at LVMH, the world's largest luxury group, rose by 19% in the three months to June, as robust growth in the US and China helped it offset a new round of lockdowns in China.

LVMH, which owns dozens of high-end labels such as Tiffany, said sales came to 18.73 billion euros ($18.95 billion) in the second quarter, beating analyst expectations for 17.13 billion euros in a Visible Alpha consensus cited by UBS.

The growth pace in the second quarter was a tad slower than in the first three months of 2022, when group sales had climbed by 23%.

Demand for fashion and leather goods from its star labels Louis Vuitton and Dior eased up slightly from high levels at the start of the year, rising by 19% in the quarter, as flows of travelling shoppers returning to Europe helped to mitigate disruptions to business in China.

LVMH has been tapping into strong, post-pandemic demand for its designer labels as socializing resumes and shoppers continue to spend savings from lockdowns, brushing off concerns about turbulent stock markets and rising prices.

The company's strong second quarter is setting the tone for rivals, with Gucci-owner Kering reporting its own first half results on July 27 and Hermes on July 29.



LVMH Posts 3% Drop in Sales as Core Business Slumps

The logo of LVMH Moet Hennessy Louis Vuitton is seen in front of the LVMH luxury group headquarters in Paris, France, April 14, 2025. (Reuters)
The logo of LVMH Moet Hennessy Louis Vuitton is seen in front of the LVMH luxury group headquarters in Paris, France, April 14, 2025. (Reuters)
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LVMH Posts 3% Drop in Sales as Core Business Slumps

The logo of LVMH Moet Hennessy Louis Vuitton is seen in front of the LVMH luxury group headquarters in Paris, France, April 14, 2025. (Reuters)
The logo of LVMH Moet Hennessy Louis Vuitton is seen in front of the LVMH luxury group headquarters in Paris, France, April 14, 2025. (Reuters)

LVMH, the world's largest luxury group, said on Monday sales fell 3% over the first quarter, missing expectations and confirming a sector slowdown as shoppers held back on purchases of designer fashion in a choppy economic environment.

The French company behind high-end labels including fashion houses Louis Vuitton and Dior, jewellery brand Bulgari and Hennessy cognac, reported sales for the three months to the end of March of 20.3 billion euros ($23.08 billion).

The result compares with 1% growth in the fourth quarter and analyst expectations for 2% growth in the first quarter of 2025, according to a VisibleAlpha consensus estimates.

The fashion and leather goods division, home to Louis Vuitton and Dior and accounting for nearly half of group sales and over three quarters of operating profit, posted a 5% fall in sales, well below expectations for a flat performance.

LVMH said fashion and leather goods sales saw a "slight decline" in the US while Japan was weaker than the comparable quarter a year ago when Chinese led growth in spending there.

Europe's luxury players were counting on wealthy Americans to reignite growth for the sector at the start of this year as the outlook for China, another crucial market, remained bleak.

But as fears of a US recession are on the rise after President Donald Trump's recent tariff announcements sent stock markets and the dollar plunging, the sector is bracing for what could be its longest slump in years.

The luxury sector, selling prized items to rich shoppers at high margins, is better positioned than other industries to use its pricing power to shield profits against Trump's tariffs, which would include a 20% charge on European fashion and leather goods and 31% for Swiss-produced watches if fully applied.

Last week, Trump paused most of his tariffs for 90 days, setting a general 10% duty rate instead.