Against a backdrop of trade wars, sales and, even more so, profitability at the world’s leading luxury goods company declined during the first six months of the year. However, CEO Bernard Arnault considers this performance to be “solid” and is actively working on the issue of future US tariffs to prevent the situation from deteriorating further.
The first half of 2025 will not go down in the annals of LVMH.
However, this does not prevent Bernard Arnault, CEO of the world’s leading luxury goods company, from believing that his group “has demonstrated its resilience in the current environment,” which is difficult for the luxury sector at the moment.
LVMH’s half-year revenue thus fell by 3% on an organic basis, i.e. at constant exchange rates and scope (-4% as reported), to €39.8 billion. However, its profitability was hit harder, with a 15% decline in current operating profit to €9 billion and a 22% drop in net profit to €5.7 billion. The operating margin fell by nearly 3 points to 22.6%, compared with 25.5% in the first half of 2024.
More or less in line with analysts’ forecasts
This is more or less the scenario that analysts had anticipated. According to the consensus established by Factset, they had forecast average revenue of €39.89 billion, operating profit of €8.88 billion and net profit of €5.96 billion for the first half of the year.
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Read also > LVMH slows down in the first quarter of 2025
Featured photos: © Photo by JUNHYUNG PARK on Unsplash
