Luxury conglomerate LVMH reported a decline in sales for the first half of 2025, as billionaire CEO Bernard Arnault announced plans to open a second factory in Texas amid concerns about how the luxury sector will navigate President Donald Trump’s tariffs.
CEO of LVMH Holding Company, Antoine Arnault speaks during a meeting after LVMH was named as final ... More
The luxury conglomerate posted $22.95 billion (€19.5 B) in sales for Q2, in line with analyst expectations.
While analysts predicted a 7.02% decline in sales growth, LVMH's second-quarter revenue outperformed expectations, with sales only down 3%.
The firm is projected to earn $26.06 billion (€22.15B) this fiscal year.
A mild slowdown in sales and uncertainty in Q1 was expected to continue into the second quarter, according to Morningstar equity analyst Jelena Sokolova, “with no recovery or slowdown for these luxury players.”
Cécile Cabanis, the firm’s CFO, revealed that the wine and spirits division is experiencing an ongoing restructuring, adding the group does not expect to see significant sales growth in the sector until the second half of 2026.
Wine & Spirits and fashion & leather goods divisions both experienced a 7% decline in revenue, due to continued inflation. Cabanis cited Japan’s falling tourist economy as one of the main factors in the decline of fashion & leather goods sales. Although LVMH made no direct comment on Trump’s tariffs, Cabanis said selective retailing helped maintain the market in the U.S., namely through Sephora.
Loro Piana, which has seen a resurgence in recent years thanks to the ‘quiet luxury’ trend, was recently put under court administration in Italy for a year because of alleged worker exploitation within its supply chain. According to reports, investigators found workers were forced to work up to 90 hours a week, seven days a week and made less than $5 per hour. Cabanis said Thursday the firm had cut ties with that supplier. LVMH acquired 80% of Loro Piana for $2.57 billion in 2013. LVMH has three factories within the U.S., two in California and one in Texas. Reports say the Texas factory is one of Louis Vuitton’s worst performing factories. Donald Trump attended the ribbon cutting for this Texas factory in 2019 with the expectation the factory would create 1,000 jobs over a five year period. However, reports state the headcount could be as low as 300. LVMH received a host of tax breaks from Johnson County, where the Texas factory resides, including a 10-year 75% property tax cut, saving the company an estimated $29 million.
Forbes estimates LVMH Chairman and CEO Bernard Arnault and family to be worth $146 billion, making him the richest person in Europe and eighth richest in the world as of Thursday.
The luxury sector faced a slowdown in 2024 due to a loss in consumer confidence caused by economic uncertainty and a shift in spending patterns. However, LVMH still dominated the global luxury market with nearly a quarter of market share last year. Investors were also watching as consumers in Asia have driven sales, boosting it to the top buying market, accounting for 37% of regional revenue in 2024. Moët Hennessy has recently been the weakest performing division within LVMH. It experienced a 36% drop in operational profits in 2024 and sales revenue down 9% in 2025. Alexandre Arnault, Bernard Arnault’s son, began heading the division in February 2025 in a bid to target younger consumers, and cut the sector’s workforce by 10% this May. His appointment comes after success in rejuvenating Tiffany and Rimowa through high profile celebrity endorsements and collaborations.