Louis Vuitton owner LVMH posted weaker-than-expected revenue for the first quarter as the war in the Middle East hit growth and weighed on hopes of a demand rebound for high-end goods.
The French company, which is considered a pacesetter for the industry, said Monday that it made revenue of 19.12 billion euros ($22.42 billion) for the first three months of the year. This was 1% higher in organic terms compared with the same period a year earlier.
The growth rate was the same as the one it posted in the preceding quarter, which comprised the key shopping Christmas period, but revenue was below consensus estimates of 19.49 billion euros, according to Visible Alpha.
The luxury titan, led by billionaire Bernard Arnault, said the geopolitical and economic environment remained disrupted, amplified by the conflict in the Middle East. The war had a negative impact of around 1% on organic growth for the quarter, it said.
The fashion and leather goods business--its main sales and profit driver that houses labels such as Dior and Louis Vuitton--booked revenue of 9.25 billion euros, representing a 2% on-year organic decrease. The result also fell short of analysts' forecasts of 9.46 billion euros.
Over the past few years, luxury brands have been seeing a challenging market environment, including weak demand, trade disputes and a complex geopolitical landscape.
Write to Andrea Figueras at andrea.figueras@wsj.com
Bernard Arnault is a French businessperson who has been at the helm of 10 different companies and presently holds the position of Chairman of Christian Dior SE, Chairman for Château Cheval Blanc SC, Chairman & Chief Executive Officer at LVMH Moët Hennessy Louis Vuitton SE, Co-Chairman of Groupe Arnault SE and President for Groupe Arnault SE. He is also Chairman for Fondation Louis Vuitton pour la Création and on the board of 5 other companies.
He previously held the position of Chairman & Chief Executive Officer of Ferret Savinel Co., Chairman & Chief Executive Officer for Nexity SA, Chairman & Chief Executive Officer for Société Financière Agache SA and Chairman & Chief Executive Officer at Financière Agache SA.
Mr. Arnault received an undergraduate degree from Ecole Polytechnique.
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (46.7%): brands such as Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, etc.;
- watches and jewels (13%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (10.1%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, Givenchy brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (6.6%): champagnes (Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining net sales (23.6%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2025, products are marketed via a network of 6,283 outlets located throughout the world.
Net sales are distributed geographically as follows: France (8.3%), Europe (18%), Japan (7.9%), Asia (26.5%), the United States (25.6%) and other (13.7%).
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