The Q1 figures from LVMH for the year 2025 show a mixed balance that leans more negative than positive. Here are the key metrics and developments:
Key Figures
- Revenue: The total revenue of LVMH in the first quarter of 2025 was 20.3 billion euros, reflecting a decline of 1.9% compared to the previous year. Organically, meaning adjusted for currency effects and acquisitions, the decline was about three percent.
- Fashion and Leather Goods Segment: This segment, which represents LVMH’s most important business area, saw an organic revenue decline of five percent. The absolute revenue amounted to 10.1 billion euros, corresponding to a decline of 3.6% year-on-year.
- Wines & Spirits: This division was affected by Chinese tariffs on Hennessy Cognac and recorded a revenue decline of nine percent.
- Perfumes and Cosmetics: Here, a revenue decline of one percent was noted, although growth had been expected.
- Watches & Jewelry and Selective Retailing: These segments largely stagnated and failed to meet expectations.
Market Development and Investor Perspective
- Market Development: Despite the declines, LVMH remains a significant player in the luxury segment. The younger generation and the increase in women’s purchasing power could contribute to long-term growth, but brands must take issues like sustainability and ethical production seriously to resonate with younger consumers.
- Investor Perspective: LVMH’s stock has lost about 15% of its value since the beginning of the year and is in a downward trend. The Q1 figures have significantly missed analyst expectations, leading to further depreciation of the stock. Investors are cautious and awaiting clear signals regarding future developments.
Challenges and Outlook
- Challenges: Geopolitical uncertainties, particularly in the USA and China, are weighing on LVMH’s business. Imminent tariffs and a normalization in selective distribution in the USA also contribute to the uncertainty.
- Outlook: LVMH remains vigilant and optimistic, although the current environment is challenging. The upcoming shareholders’ meeting on Thursday could provide additional insights into the company’s strategy.
In summary, the Q1 figures from LVMH show a weaker development than expected, attributed to global uncertainties and changing consumer behavior. Despite these challenges, LVMH remains a key player in the luxury market, and long-term trends may support growth.