LVMH Fashion and Leather Goods Sales Decline by 9% in the First Half of 2025

The parent firm of Louis Vuitton, Dior, Loewe, and Celine is persistently hindered by a confluence of economic challenges, data breaches, and labor controversies.

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LVMH, facing a challenging year for the luxury industry, failed to meet analysts' forecasts according to the group's earnings report for the first half of 2025, concluding on June 30.

Although net profit declined by 22% in the first half of 2025, the luxury conglomerate stated that it "demonstrated considerable resilience and sustained its robust innovative momentum despite a disrupted geopolitical and economic landscape."

Overall revenue declined by 4% year-over-year, decreasing from €46.8 billion to €39.8 billion. LVMH’s largest division, Fashion and Leather Goods, experienced the most significant decline, with revenues dropping by 9% from €20.8 billion in the first half of 2024 to €19.1 billion in 2025.

The company, which oversees prominent luxury brands such as Louis Vuitton, Dior, Fendi, Givenchy, Loro Piana, and Celine, experienced a temporary performance boost following the epidemic, but has subsequently declined alongside its rivals Kering and OTB Group. The reduction in luxury expenditure is particularly evident in China, although the deceleration is significant worldwide. After a succession of unsatisfactory earnings reports, Hermès surpassed LVMH as the most valuable luxury stock globally, as its first quarter revealed a 7.8% decrease in share value.

The firm has faced adverse press this year, with an escalating labor exploitation issue impacting Loro Piana, data breaches concerning Louis Vuitton in Hong Kong and the UK, and a cultural appropriation problem involving Dior. Moreover, customers have responded unfavorably to increases in luxury prices, while diminished consumer confidence persists in hindering sales.

Over the past year, LVMH's performance has acted as a barometer for the broader luxury market, and the most recent data suggest that the deceleration has not yet abated.