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LVMH sales fell more than expected in the first quarter, which led to an explicit note for the luxury industry as it is preparing to advance from US President Donald Trump’s tariff.
Organic sales in the LVMH Fashion and Leather Commodities Department, which includes Luis Vuitton and Christian Dior, decreased by 5 percent on an annual basis to 10.1 billion euros in the first three months of the year.
Performance in the group’s main section, which is seen as a wider luxury bell, has been absent from the expectations of consensus of a 1 percent increase by a significant difference. Luka Solka, the Bernstein analyst, said the results of LVMH were a “soft beginning” until 2025.
LVMH, the world’s leading group, is the first company in this field reports of quarterly results since Trump announced a blanket tariff for trade partners in America this month. Economists fear Trade war Between the United States and China, the world’s largest luxury markets will have a chilling effect on the global economy.
Group sales in LVMH decreased by 3 percent to 20.3 billion euros, compared to consensus estimates that they will be flat.
The company said: “In a thirsty geopolitical and economic environment, LVMH remains awake and confidence at the beginning of the year.”
The group listed in the Paris list, the largest player in Luxury, was not of 244.2 billion euros, fortified against the industry, which enjoyed a historical prosperity during the epidemic.
The defeated demand from Chinese consumers, which is the main reason for the luxury market conflicts, continued unabated. LVMH sales in Asia, with the exception of Japan, decreased by 11 percent in the first quarter.
The financial manager of LVMH, Cecil Kabannis, said there was no “any change in the local demand in China.” McKinsey estimates that the demand for the luxurious Chinese main mainland market contracts between 18 and 20 percent in 2024.
LVMH, which is controlled by billionaire Bernard Arnolt, CEO and head of the group, said that US sales decreased by 3 percent in the first quarter.
Cabanis cited weak performance in the cosmetic work, which includes the Sephora and enjoyed strong sales a year ago, as the main driver to decline in the United States. The 9 % decrease in wine and spiritual drinks in the group also contributed.
Group sales decreased by 1 percent in Japan, but increased by 2 percent in Europe.
The unexpected intensity of Trump’s tariff prompted last analysts last week to re -request their expectations for the US -led apostasy to spend on consumers across the sector.
While the buyer of luxury goods have a greater ability to absorb prices than the wealthiest consumers, the industry executives fear that the last market turmoil will eat consumer confidence and prevent estimated spending via the income scale.
HSBC now expects the profitability of the luxury sector to be 2025 flat, unlike the forecasts preceding the growth of 5 percent. Bernstein is more strict, and the industry is expected to shrink by 2 percent this year, unlike expectations of an altitude of 5 percent.
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