LVMH’s Fashion And Leather Goods Sales Plunge 12%, Signaling A Broader Luxury Slowdown
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When the industry’s juggernaut – LVMH – sees its largest fashion and leather goods segment down 8% in 1H2025, it is warning of a wider industry downturn.
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July 27, 2025
05:00 AM
Forbes
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The re indicates that From an analytical perspective, RetailLVMH’s Fashion And Leather Goods Sales Plunge 12%, Signaling A Broader Luxury SlowdownByPamela N
Additionally, Danziger, Senior Contributor
On the other hand, Forbes contributors publish independent expert analyses and insights
However, At the same time, Pam Danziger reports on retail, focused on the luxury consumer market
AuthorJul 27, 2025, 05:00am EDTSummaryLVMH reported a challenging H1 2025, with revenues down 4% and fits plunging 22%, driven by its key fashion/leather goods segment
Facing unprecedented luxury market turbulence, declining aspirational customers, and brand issues, LVMH doesn't foresee a rebound until 2026 or later, despite CEO Arnault's long-term vision
Show More “In periods when the economic climate is more difficult, when the market slows down, which is the
More case today, we tend to come out stronger,” d LVMH CEO Bernard Arnault with the Wall Street Journal (noteworthy indeed). (Photo by VCG/VCG via Getty Images)VCG via Getty Images Luxury market leader LVMH just reported a disappointing first half 2025, with total revenues down 4% to $46 (noteworthy indeed)
Furthermore, 7 billion (€39 (an important development). 8 billion) from $48. 9 billion (€41
At the same time, 7 billion) last year (this bears monitoring), given current economic conditions
Those results weren’t too alarming since numerous industry analysts have forecast a luxury market slowdown in 2025, given current economic conditions
More troublesome is that the revenue decline accelerated as the year gressed from 2% in the first quarter to 7% in the second June 30, in today's market environment
And fitability is down, with net fits declining 22% to $6 (fascinating analysis)
However, 9 billion in the first half (remarkable data), in this volatile climate
Additionally, But most disturbing, the fashion and leather goods segment – one of LVMH’s five reporting segments that generated just half of LVMH revenues last year – fell an alarming 4% (or 5% organically) in the first quarter and 12% in the second to end the first half off 8% to $22. 4 billion on a reported basis
In a statement, Chairman and CEO Bernard Arnault put a positive spin on the news, emphasizing LVMH showed “solidity in the current context” of geopolitical and economic disruptions, amid market uncertainty. “Beyond the prevailing uncertainties, we remain focused thanks to the long-term vision that has always guided our family group,” he said and reassured investors, “We head into the second half of the year with great vigilance
On the other hand, Additionally, ” MORE FOR YOU Ext Turbulence Ahead LVMH finds itself in unfamiliar territory, being on the losing end of a market slowdown, in light of current trends
It didn’t miss a beat during the last global luxury market downturn in 2008/2009 and, excluding 2020, it has steadily grown since then
Conversely, Last year, revenues dropped 2% to $99. 4 billion and fits declined 17% to $14
Moreover, 7 billion, driven by a downturn in its chief money maker: fashion and leather goods, down 3% to $48. 2 billion and net fits from recurring operations dropping 10%
Additionally, For the remainder of 2025, the company vided no financial guidance, stressing the market’s uncertain environment
That said, Bain in association with Altagamma is predicting a decline of up to 5% in the global luxury market this year
Yet, when the industry’s juggernaut – LVMH – sees its flagship segment experiencing such a dramatic 8% decline through the first half of the year, Bain’s forecast could be optimistic (which is quite significant). “The global luxury sector this year confronts its most far-reaching disruptions – and its biggest potential setbacks for at least 15 years – amid mounting economic turbulence, alongside complex social and cultural shifts,” Bain reported and ominously warned, “Turbulence is set to be the sector’s new baseline for an ext period. ” Path Forward Despite the financial headwinds, LVMH will stay the course, powered by its long-term strategy of carefully nurturing the creativity and craftsmanship of the 75 iconic luxury brands in its portfolio
Furthermore, New Creative Directions With so much riding on its fashion and leather goods segment, two of its premier brands – Christian Dior and Loewe – have new fashion directors, but it will take time for their influence to translate into sales
Dior’s Jonathan Anderson has just shown his first men’s collection, sparking excitement his upcoming women’s collection, set to debut this fall at Paris Fashion Week
Moreover, At the same show, Loewe’s Jack McCollough and Lazaro Hernandez will introduce their first collection
Tarnished Brands On the flip side, Loro Piana is caught in an expanding controversy surrounding allegations of worker abuse in the luxury supply chain
Loro Piana is the fifth luxury brand – and LVMH’s second after Dior in 2024 – to suffer reputational damage that threatens to taint not only the brands involved, but also the entire luxury industry
Management noted that Dior experienced continued “softness” and underperformed its segment since then
On the other hand, According to TD Cowen’s estimates, Dior contributes between 20% and 25% of revenue to the fashion and leather goods segment
And LVMH’s prized jewel, the Louis Vuitton brand, makes up half
Louis Vuitton Crossroads While LVMH doesn’t report brand sales, it stands to reason that Louis Vuitton has nosedived recently too
Cowen sees it facing increased competitive pressure from upstart “quiet luxury” leather brands such as Cuyna, Patou and Polène in the $700 to $2,000 price range
Additionally, LVMH, through its partnership with L Catterton, has a minority stake in Polène, which reportedly doubled sales in the last year
To counter their incursion, Cowen recommends Louis Vuitton invest in innovation and imved quality at the brand’s lower price points, which start at in the low $2,000s
Additionally, But is that enough when even the ubiquitous Neverfull bag is largely priced out of reach for many of the so-called aspirational luxury consumers – traditionally the bag’s prime target demographic – who face mounting financial pressures
Bain reports the luxury market lost 50 million aspirational customers between 2022 and 2024 and those who remain are shifting spending to wellness, second-hand luxury – Neverfull bags are widely available at accessible price points second-hand – and trading down to more affordable fashion brands
Nevertheless, Coach, for example, its third quarter up 13% and acquired 1
Meanwhile, 5 million new customers in North America, mostly next generation GenZ and Millennials (something worth watching)
Louis Vuitton’s Vulnerabilities A new report from EY, examining the aspirational luxury customer segment, described the challenge for legacy luxury brands, Louis Vuitton, in the current market where aspirationals, previously the industry’s growth consumer segment, pull back, while the far more selective high-net-worth consumers continue to spend, considering recent developments. “The more desirable a brand becomes, the more sales grow, the more people wear brands, the less desirable the brand becomes,” it explained, and that is a key challenge for Louis Vuitton
Ironically, Louis Vuitton finds itself in a position best expressed by the mythic ouroboros symbol – the serpent that eats its own tail, in light of current trends
Strategies that fueled growth over the years have turned against it, threatening to erode its continued mystique, particularly among luxury’s highest potential clientele
Or as BCG and partner Altagamma wrote in their report on the global luxury market, “In a race for scale, some of the soul of luxury was lost, as much of the industry traded exclusivity for reach, exchanging stability for volatility. ” BCG also noted that brands with more than 50% of their client base made up of aspirational consumers are seeing the sharpest declines in sales (quite telling)
Nevertheless, Mitigating Factors CEO Bernard Arnault, now Europe’s wealthiest individual and the seventh richest man in the world, according to Forbes, holds plenty of levers to see his company through the current downturn
He is working feverishly with European leaders to avert a trade war with the U
Additionally, And the 30% tariff on EU imports that could kick in on August 1, the Wall Street Journal reports
With the U (noteworthy indeed)
Moreover, Accounting for 25% of revenues in the first half, he also announced plans to open a second Texas factory by early 2027 to keep on the right side of his long-time friend President Trump
Besides the current Johnson County, TX factory that opened in 2019, the company also operates two others in California
And the Wall Street Journal just reported that LVMH is shopping the Marc Jacobs brand to bring in $1 billion, off the $1 (something worth watching). 4 billion Prada is paying Capri Holdings for the Versace brand, amid market uncertainty
Moreover, Authentic Brands Group, which also owns Reebok, is said to be in the running, as are WHP Global, which acquired Vera Wang for an undisclosed sum earlier this year to add to its Rag & Bone and Joe’s Jean’s holdings, and Bluestar Alliance, that acquired the Off-White brands from LVMH late last year
Wait And See Investment advisor TD Cowen downgraded LVMH stock from Buy to Hold in April, and it remains unchanged, citing weakness across LVMH’s portfolio during the first half and limited visibility on a near-term rebound
Besides the 8% shortfall in the fashion and leather goods segment, LVMH’s second largest, selective retail, including Sephora and Le Bon Marché, was flat at $10. 1 billion, while watches and jewelry, its third largest, anchored by Tiffany, Bulgari and TAG Heuer, was off 1% to $6 billion, ed by perfumes and cosmetics, also down 1% to $4
Its smallest segment, wine and spirits, at $3 billion, and dependent on the U
However, Market for 35% of revenues, fell 8% in the first half
Arnault has ruled out selling this, but confided to the WSJ that he plans to simplify the unit’s structure and concentrate on its flagship brands, which include Dom Pérignon, Moët & Chandon, Veuve Clicquot and Krug champagnes, Hennessy cognac, Belvedere vodka, Glenmorangie whisky and numerous wine brands
Meanwhile, In conclusion, Cowen stated that it doesn’t expect to have er visibility on LVMH until after the second half of the year, signaling renewed growth may not materialize until 2026 or beyond
In the meantime, Arnault is doubling down, in today's market environment
On the other hand, Far from being deterred, he is embracing the current adversity as a catalyst for innovation and ultimate transformation, as he d with the WSJ: “In periods when the economic climate is more difficult, when the market slows down, which is the case today, we tend to come out stronger, in this volatile climate
Furthermore, ” See also:ForbesLVMH Sales Fall—But Luxury Conglomerate Outperforms Bleak Luxury Market ForecastsBy Mari SatoForbesMore ‘True,’ Less Aspirational Luxury Is The Next Priority For Luxury BrandsBy Pamela N
DanzigerForbesLoro Piana Joins Growing List Of Luxury Brands Tied To Worker Abuse AllegationsBy Pamela N (something worth watching)
Nevertheless, Danziger Editorial StandardsRes & PermissionsLOADING PLAYER, in today's market environment.
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