The profit from recurring operations declined 15 per cent year-over-year (YoY) to €9 billion, representing an operating margin of 22.6 per cent. The net profit attributable to the group stood at €5.7 billion (~$6.67 billion), down 22 per cent. Operating free cash flow rose significantly by 29 per cent to €4 billion, while net financial debt decreased by 16 per cent to €10.2 billion.
LVMH has reported a revenue of €39.8 billion (~$46.96 billion) in H1 2025, down 4 per cent YoY, with net profit falling 22 per cent to €5.7 billion (~$6.67 billion).
Fashion and Leather Goods led with €19.1 billion (~$22.538 billion) revenue, despite reduced tourist spending.
Q2 saw a sequential dip in this segment.
Strong local demand in Europe and the US supported resilience.
Segment-wise, Fashion & Leather Goods, LVMH’s largest division, recorded a revenue decline of 8 per cent to €19.1 billion (~$22.54 billion), with operating profit falling 18 per cent to €6.6 billion. Despite reduced tourist spending, local demand remained resilient, with strong performances by Louis Vuitton, Dior, Fendi, and Loewe.
Region-wise, Europe and the United States saw solid local demand. Japan reported a decline due to the extraordinary tourist boost in H1 2024. Asia (ex-Japan) remained stable, with improving local sales in Q2 2025.
Selective Retailing achieved 2 per cent organic growth, maintaining revenue at €8.6 billion and improving operating profit by 12 per cent to €876 million.
In the second quarter (Q2) of 2025, LVMH reported a revenue of €9,006 million in Fashion and Leather Goods division. This marks a sequential decline from €10,108 million recorded in Q1 2025, reflecting the ongoing impact of a disrupted geopolitical environment and normalisation in tourist spending, particularly in Japan.
“LVMH showed solidity in the current context. We owe this to the power of our iconic brands and their boundless capacity for innovation while remaining true to their culture of incomparable artisanal craftsmanship. Beyond the prevailing uncertainties, we remain focused thanks to the long-term vision that has always guided our family group,” said Bernard Arnault, chairman and chief executive officer (CEO) at LVMH.
“We are driven by our steadfast pursuit of quality and desirability in everything we create, combined with the modernity of our historic brands. We head into the second half of the year with great vigilance, and I am confident in LVMH’s tremendous long-term potential and the commitment of our teams to further reinforce the Group’s leadership position in luxury goods. Our main shared priority is about offering our customers the most exceptional products,” added Arnault.
LVMH remains cautious heading into the second half (H2) of 2025 but reaffirmed its long-term strategy centred on brand desirability, craftsmanship, and retail excellence.
Fibre2Fashion News Desk (SG)
