Advertisement
Luxury giant LVMH reported a small drop in both revenue and profit for the first half of 2025, as high-end shoppers in Asia pulled back and demand for expensive goods weakened across several key markets. The company earned €39.8 billion in revenue during the first six months of the year, down from €42 billion during the same period in 2024.
Profit also took a hit. Recurring operating profit fell to €9 billion, compared to €11.6 billion last year. Net profit for shareholders dropped 22%, landing at €5.7 billion, down from €8.5 billion a year earlier.
LVMH said it still believes in its long-term growth and plans to keep focusing on what it does best, creating strong brand value and offering high-quality products. However, the company did point out that economic uncertainty and geopolitical tensions could continue to affect results moving forward.
Despite the weaker numbers, LVMH will pay an interim dividend of €5.50 per share on December 4.
Looking closer at sales trends, Europe and the United States provided some stability, with steady local demand. But Japan declined, following an unusually strong performance last year. Sales in other parts of Asia remained mostly flat, showing no clear growth or drop.
The company’s biggest division, Fashion & Leather Goods, saw a decline in both sales and profits. LVMH said this was partly because of a very strong performance last year that was hard to match, and also due to lower spending from tourists.
The Wines & Spirits business also struggled, especially in the U.S. and China, where demand for cognac weakened.
On a more positive note, Sephora continued to perform well, helping boost the Selective Retailing division. Meanwhile, Watches & Jewellery and Perfumes & Cosmetics stayed mostly stable, with no major changes in performance.
Overall, the results reflect a challenging time for the luxury sector, especially in key Asian markets. But LVMH appears focused on riding out the short-term bumps while keeping its long-term goals in sight.