France’s LVMH Holds Strong in Europe Despite H1 Sales Dip to $46.96 Billion

France’s leading luxury goods group, LVMH, reported a revenue of 39.8 billion euros (approximately $46.96 billion) for the first half of 2025. This figure represents a 4 percent decline compared to the same period last year. Despite this slight dip, the company remains a dominant force in the European luxury market.

Financial Performance

The net profit for the first half fell by 22 percent, reaching 5.7 billion euros (around $6.67 billion). This decrease is attributed to ongoing challenges in the global luxury sector, such as changing consumer habits and economic uncertainties. Nevertheless, LVMH’s diversified brand portfolio and strategic investments have helped mitigate more severe losses.

Leadership Insight

Bernard Arnault, chairman and CEO, emphasized the company’s resilience amid a complex market environment. He stated, “While we face external pressures, our commitment to quality and innovation keeps our brands competitive worldwide.”

Division Performance

• Fashion and Leather Goods: Experienced a slight slowdown in growth, with softer demand in China and North America but strong sales in Europe and Japan.
• Perfumes and Cosmetics: Maintained moderate stability.
• Watches and Jewelry: Also showed moderate stability.

Strategic Initiatives

LVMH continues to prioritize digital transformation and sustainability. The company is investing in e-commerce platforms and eco-friendly product lines to meet evolving customer expectations and comply with regulatory standards.

Outlook

Industry experts are optimistic that, despite short-term setbacks, LVMH’s strong brand equity and strategic focus on emerging markets will foster long-term growth. The group’s adaptability to market changes is considered a key strength amid shifting global economic conditions.

LVMH plans to publish a detailed full-year report with outlooks and planned investments for the second half of 2025. Analysts will pay close attention to how the company manages challenges such as geopolitical uncertainties and fluctuations in consumer confidence.

For continuous updates, stay tuned to Questiqa Europe News.

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