LVMH under pressure as luxury slowdown deepens across key markets

Luxury goods group LVMH (EPA: MC), owner of brands such as Louis Vuitton, Moët & Chandon, and Hennessy, is the first major European player to report Q1 earnings since U.S. President Donald Trump’s announcement — and then delay — of reciprocal tariffs on its global trading partners. Shares of the French conglomerate have fallen nearly 8% since the company posted a -3% drop in Q1 organic sales growth— its weakest performance since the pandemic.

The slump reflects broad-based softness in consumer demand. In the U.S., shoppers pulled back on discretionary categories such as beauty and alcohol. In China, the appetite for luxury remained subdued. Sales in the Asia-Pacific region fell -11% year-on-year, mirroring the drop seen in the previous quarter. Japan saw sales swing from an 8% rise in Q4 2024 to a -1% decline. Meanwhile, the U.S. returned to negative territory with a -3% drop, while growth in Europe slowed to 2% from +4% in Q4.

Analysts are bracing for another weak quarter. Visible Alpha consensus estimates suggest organic sales growth will decline to -0.24% in Q2, a sharp revision from a previously expected increase of +2.7%. All major markets are set to underperform earlier projections: U.S. organics sales are now expected to contract by -1.2% (vs. +2.18% PreQ), Japan by -2% (vs. +3.17% PreQ), and Asia-Pacific by nearly -5% (vs. +0.16% PreQ). Only Europe is forecast to stay in positive territory at +1.95% (vs. +3.95% previously).