LVMH Moët Hennessy Louis Vuitton reported Monday that first-quarter gross sales dipped 2 p.c to twenty.31 billion euros, trumpeting its resilience “regardless of a disrupted geopolitical and financial setting.”
Stripping out the impression of forex and adjustments in scope, the decline stood at 3 p.c.
The numbers appeared to verify investor concern that America – which had been driving luxurious consumption in latest quarters – is slowing down.
In a launch issued Monday after the shut of buying and selling on the Paris bourse, LVMH mentioned Europe achieved progress within the interval, whereas the “United States noticed a slight decline, regardless of an excellent efficiency in vogue and leather-based items and in watches and jewellery.”
By division, natural revenues fell 9 p.c in wines and spirits, 5 p.c in vogue and leather-based items, 1 p.c in selective retailing, and 1 p.c in perfumes and cosmetics. Gross sales have been flat on the watches and jewellery unit.
Fairness analysts at Barclays had forecast that total revenues would are available in flat at 21.2 billion euros, with vogue and leather-based items falling 1 p.c “contemplating the difficult macro setting,” and “powerful comps.”
The French luxurious big recorded a 1 p.c uptick in natural revenues within the fourth quarter of 2024, and a 1 p.c drop at its vogue and leather-based items enterprise unit.
LVMH’s chief monetary officer Cécile Cabanis is to host a name with press and analysts, the place the Trump administration’s tariffs are positive to be a scorching matter.
Nonetheless, when it comes to tariff danger, LVMH is taken into account extra insulated than its friends given excessive gross margins in its vogue and leather-based items, low publicity to the U.S. market, and that a part of its bag strains are manufactured in America, in line with Barclays.
LVMH is the primary large European luxurious participant to report first-quarter outcomes, with Hermès Worldwide scheduled for Thursday and Kering, mother or father of Gucci and Saint Laurent, on April 23. The annual outcomes presentation of Swiss group Richemont is predicted on Could 16.
