State hasn't been held responsible for the measures under consideration, Commission observes.
Subscribers can gain exclusive access to the latest information about LVMH's Q2 and H1 2025 results, presented today. DER AKTIONÄR is providing insights into what matters in these results tonight.
The luxury conglomerate, an industry leader, reported a 4% year-over-year decrease in revenue for H1 2025, amounting to €39.8 billion (approximately $46.8 billion). Net profit plunged 22%, and recurring operating profit fell 15%, primarily due to a disrupted geopolitical and economic environment.
The Fashion & Leather Goods division, which accounts for nearly 80% of operating profits, saw an 8% revenue decline for H1 and a sharper 9% decline in Q2. Louis Vuitton, one of the division's key brands, experienced a 28% drop in sales in Japan. Other segments such as Watches & Jewelry and Perfumes & Cosmetics also posted modest declines or flat results.
Although the company did not offer a formal outlook for the rest of the year, some analysts are cautiously optimistic about a moderate revenue recovery supported by normalizing demand from Chinese and U.S. consumers. The consensus is that LVMH's brand strength and diversified portfolio contribute to resilience despite the current cyclical downturn, and a long-term annual sales growth around 5% is forecasted, which is conservative compared to historical averages near 10%.
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The presentation of LVMH's results is expected to send a clear signal about the health of the luxury market and the company's ability to navigate challenging global conditions. As the results are presented, analysts and investors will be closely watching to see if LVMH's brand power and global consumer demand normalization will lead to a recovery and long-term growth in the luxury sector.
[1] Financial Times [2] Bloomberg [3] Reuters
[1] Despite the 4% decline in revenue and the drop in net profit, some analysts remain optimistic about a moderate recovery for LVMH due to its brand strength and diversified portfolio. [2] As the luxury conglomerate navigates through the current cyclical downturn, investing in this business could prove beneficial for long-term growth opportunities. [3] LVMH's Q2 and H1 2025 results, presented today, will provide valuable insights into the health of the luxury market and the company's ability to sustain its business operations, making it imperative for financial analysts and investors to closely monitor these developments.
