LVMH, the world’s largest luxury goods conglomerate, reported a decline in its revenue for the first quarter of the year. The company’s watch and jewelry division was the only segment to see slight growth amid overall challenges.
The luxury giant announced on Monday that its Q1 revenue decreased by 2 percent, or 3 percent on an organic basis, totaling €20.31 billion ($23.03 billion).
The steepest decline came from its wine and spirits division, which saw an 8 percent drop (9 percent on an organic basis). The fashion and leather goods division followed closely with a 4 percent fall (5 percent on an organic basis).
However, LVMH’s watch and jewelry division bucked the trend with a modest 1 percent increase in sales, totaling €2.48 billion ($2.81 billion). On an organic basis, this division’s growth was flat.
Despite the challenges, LVMH expressed confidence in its performance. In a statement, the company said, “LVMH showed good resilience and maintained its powerful innovative momentum despite a disrupted geopolitical and economic environment.”
During an earnings call, LVMH’s Chief Financial Officer, Cécile Cabanis, explained that the company did not see a significant change in consumer behavior due to tariffs in the first quarter. She acknowledged, however, that less favorable economic conditions could affect more aspirational customers.
“While the overall trend remains stable, the more aspirational clientele tends to be more vulnerable in less positive economic cycles,” Cabanis noted.
In the U.S., LVMH saw a slight decline in sales. However, Cabanis pointed out that demand for fashion and leather goods, as well as watches and jewelry, remained strong, showing modest growth compared to the second half of the previous year. The U.S. remains LVMH’s second-largest market, accounting for 24 percent of total revenue, a slight increase from 23 percent in the same period last year.
Europe, on the other hand, posted sales growth, and LVMH’s performance in Japan showed a decline compared to last year’s record high. The company attributed last year’s strong growth in Japan to increased consumer spending from Chinese shoppers. Other Asian markets followed a similar trend to the previous year.
LVMH’s jewelry brands, including Tiffany & Co. and Bulgari, continued to expand and innovate. Tiffany & Co. continued to roll out its new store concept, inspired by its flagship in New York City, “The Landmark.” The brand also highlighted the success of collections like “Tiffany T” and “Lock.”
Bulgari, for its part, celebrated the Year of the Snake with immersive art exhibitions in Shanghai and Seoul. The brand also opened a new flagship store in Milan, inaugurated a watchmaking workshop in Switzerland, and expanded its manufacturing facilities in Italy.
In the watch segment, brands such as TAG Heuer, Hublot, and Zenith showcased their latest timepieces during the sixth LVMH Watch Week, held in New York and Paris. TAG Heuer, in particular, extended its partnership with Formula 1, becoming the official timekeeper for the Australian Grand Prix.
Looking ahead, LVMH did not provide specific guidance for the rest of the year. However, the company expressed confidence in its ability to navigate ongoing geopolitical and economic uncertainties. “LVMH will rely on the talent and motivation of its teams, the diversity of its businesses, and the good geographic balance of its revenue to further strengthen its global leadership position in luxury goods in 2025,” the company said.
Related topics:
- Kim Kardashian to Testify at Paris Jewelry Theft Trial
- Burglars Steal Millions in Jewelry from Downtown Los Angeles Store
- Jewelry Factory Backed by Chinese Investment Opens in Dushanbe
