LVMH (MC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was €20.3 billion, down 2% reported and 3% organic, with a +1% currency impact, reflecting normalization in key segments and mixed regional trends.

• Europe delivered growth, while the US and Asia (excluding Japan) experienced declines; Japan was down year-over-year on a high comparison base.

• The group maintained focus on innovation, creativity, and disciplined investment in brands and selective distribution amid macro and geopolitical uncertainties.

• Chinese demand in Japan normalized after last year's surge, impacting growth; U.S. demand for fashion, leisure, watches, and jewelry modestly accelerated versus H2 2024.

Financial highlights

• Total Q1 2025 revenue: €20.3 billion, down 2% reported and 3% organic year-over-year; currency effect added +1%.

• Asia's revenue mix fell by 3 percentage points year-over-year; U.S., France, and other markets each rose by 1 point.

• U.S. revenue declined 3%, Japan was down 1%, Asia dropped 11%, and Europe grew 2% year-over-year.

• Wines & Spirits revenue was €1.3 billion, down 9% organic and 8% reported; Champagne and Wines down 1%, Cognac and Spirits down 17% organic.

• Fashion & Leather Goods revenue was €10.1 billion, down 5% organic and 4% reported, with resilience from successful collaborations and product launches.

• Perfumes & Cosmetics revenue was €2.2 billion, down 1% organic, stable reported; fragrances and skincare performed well.

• Watches & Jewelry revenue was €2.5 billion, stable organic, up 1% reported; Tiffany & Co. and Bulgari expanded iconic lines.

• Selective Retailing revenue was €4.2 billion, down 1% organic, stable reported; Sephora grew, DFS impacted by low international traffic.

Outlook and guidance

• The group expects continued macro and geopolitical uncertainty, focusing on agility, innovation, and maintaining investment in brands and products.

• Margin improvement is not expected in H1 2025 due to a high comparison base; sequential improvement versus Q4 2024 is targeted.

• No major changes in U.S. consumer trends observed in Q1; April may differ.