LVMH (MC) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was €39.8–40 billion, down 3–4% organically and reported, with profit from recurring operations at €9 billion, down 15% year-over-year; operating margin at 22.6%.

• Net profit attributable to the group was €5.7 billion, down 22% year-over-year.

• Free cash flow increased to €4 billion, up 29%, reflecting strong operational discipline and working capital management.

• Local demand in Europe and the US remained solid, while Asia and Japan saw declines due to currency and tourism effects.

• Macro uncertainties, currency swings, and regional disparities weighed on performance, with operational efficiency initiatives underway.

Financial highlights

• Revenue: €39.8–40 billion, down 3–4% year-over-year; organic revenue down 3%, with a -1% currency impact.

• Profit from recurring operations: €9 billion, down 15% year-over-year; operating margin at 22.6%.

• Net profit, group share: €5.7 billion, down 22% year-over-year.

• Free cash flow: €4 billion, up 29% year-over-year.

• Interim dividend of €5.50 per share to be paid in December 2025.

Outlook and guidance

• Confidence in long-term growth and brand desirability, with focus on product innovation, selective investment, and structural efficiencies.

• Macro and currency uncertainties expected to persist; easier comps in China and Japan anticipated, but Chinese macro recovery remains gradual.

• Margin guidance remains cautious due to FX and macro volatility; focus on maintaining high margins through efficiency.

• Vigilance and commitment to environmental and social responsibility amid ongoing economic and geopolitical uncertainty.

• Selective Retailing to expand exclusive offerings and omnichannel strategy; cautious approach in Wines & Spirits and Watches & Jewelry.