Luxury powerhouse LVMH has reported a sharp fall in fashion and leather goods sales, as affluent shoppers in the United States and China cut back amid economic uncertainty, trade tensions, and cautious consumer sentiment.
The division behind iconic labels such as Louis Vuitton, Dior, and Givenchy saw organic sales drop 9 per cent in the second quarter to €9 billion, deepening from a 5 per cent decline in the previous quarter. The slump marked the steepest contraction among the group’s five business segments and raises concerns for the broader luxury sector, which has relied heavily on discretionary spending from high-income consumers.
Shares in LVMH fell 2 per cent to €470.25, extending a broader slide that has seen the stock fall 28 per cent over the past year.
For the first half of 2025, fashion and leather goods sales were down 7 per cent on an organic basis to €20.7 billion, while recurring operating profit in the segment declined 18 per cent to €6.6 billion. LVMH blamed tough comparisons with the same period last year, which had been buoyed by a rebound in global tourism—particularly in Japan.
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