LVMH’s first‑half net profit plunges 22%

LVMH’s first‑half 2025 net profit drops 22%

French luxury conglomerate LVMH disclosed that its net profit fell 22 percent in the first half of 2025, a decline attributed to an “unsettled economic and geopolitical backdrop.”

Sales down 4 percent, yet resilience asserted

• Overall sales dipped four percent to just under 40 billion euros (about 47 billion dollars).
• Chairman and CEO Bernard Arnault maintained that LVMH “demonstrates its resilience in the current context.”

Impact of U.S. tariffs on U.S. revenue

LVMH, known for Louis Vuitton luggage and Dom Perignon champagne, faced significant pressure from President Donald Trump’s tariff threat, a challenge that affected roughly a quarter of the group’s U.S. revenue.

Following Trump’s April 2 “Liberation Day” tariff announcements, Arnault observed that Hermes had overtaken LVMH as the world’s most valuable luxury firm. Trump imposed a 10 percent tariff on worldwide imports that month and postponed higher duties on dozens of countries, setting an August 1 deadline for trade deals or risk of tightening levies.

Arnault’s confidence for the second half of the year

“We are approaching the second half of the year with great vigilance, and I am confident in LVMH’s formidable long‑term potential,” Arnault said in Thursday’s press release. He was present at Trump’s second inauguration in January.

Trade dispute over European brandy exports to China

• Chief Financial Officer Cécile Cabanis noted an “improved demand from the Chinese in China,” despite LVMH’s exposure to a trade dispute concerning European brandy exports to China.
• She added that “currency‑exchange effects have led to an extremely sharp drop in demand” from Chinese tourists visiting Japan.

Revenue decline in wine & spirits and fashion

• The wine and spirits department fell eight percent to 2.6 billion euros.
• Fashion revenue also slid eight percent to 19 billion euros.

The results announcement highlighted that the wine and spirits segment was weighed by “the impact on customers of trade tensions weighing on the key U.S. and Chinese markets.”