Luxury Bellwether Wobbles: LVMH Sales Weaker Than Forecast as EU-US Trade Deal Hangs in Balance

Unknown Apr 02, 2026 700 Views

International luxury giant LVMH posted weaker-than-expected second-quarter 2025 sales, triggering fresh concerns across the luxury sector as trade giants hold their breath for US-EU trade talks guidance. Key Highlights: Sales Miss Forecasts: LVMH Q2 revenue fell 4% t...

Key Highlights:

Sales Miss Forecasts: LVMH Q2 revenue fell 4% to €19.5 billion ($22.96 billion), below consensus forecast for a less steep decline. This is the second straight quarter of disappointing results.

Profit Takes a Hit: Half-year net profit declined 22% to €5.7 billion, with core operating profit dropping 15% year-on-year.

Decline in Fashion: The critical fashion and leather accessories category—home to Louis Vuitton, Dior, and Fendi—fell 9% in sales, beating even the most bearish projections and reflecting weakening demand for expensive items.

Regional Performance: Europe and the US remained in good demand, but Asia and Japan were soft. An earlier pick-up in Japanese sales ebbed as tourism steadied and currency impact dissipated.

Tariff Fears Hang over the Market: Market sentiment remains cautious, with LVMH's CFO stating he is "confident" that the next phase of trade talks between the EU and the US will avoid aggressive tariffs. An across-the-board 15% tariff on luxury exports to the US is a perceived threat to sector recovery.

Selective Growth: Sustained growth in Sephora (selective retailing) and high growth in perfumes and cosmetics.

Wider Luxury Lag: LVMH's results had a sector-wide spill-over effect, dragging peers' shares lower as investors bracing for more volatility tied to trade policy and global economic tensions.

This resilience is owed to the strength of our brands and their limitless imagination. But our vigilance should not let up in these challenging times," LVMH CEO Bernard Arnault said.

Source: Reuters, Bloomberg, LVMH Official Financial Reports, The Fashion Law, Business of Fashion.

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