LVMH sales dip as Trump tariffs dent luxury tastes

Luxury giant LVMH saw sales fall two percent to 20.3 billion euros ($23 billion) in the first quarter of 2025 as US President Donald Trump’s tariffs shook the global economy, the company said on Monday.

The producer of Louis Vuitton bags and Dom Perignon champagne, owned by Europe’s richest man Bernard Arnault, generates a quarter of its revenue in the United States.

Despite putting up decent numbers in fashion, watches and jewellery in the country, LVMH saw a “slight decline” in overall US sales, the firm said in a statement — without giving a figure for that fall.

In his so-called April 2 “Liberation Day” Trump announced a slew of tariffs on trading partners across the world, including a 20-percent duty on European Union goods, before backtracking and suspending their implementation for 90 days.

“We all need to… stay very calm because we are in unknown territories,” LVMH’s chief financial officer Cecile Cabanis told analysts.

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“The worst is never certain.”

Arnault and two of his children were among prominent figures at Trump’s inauguration in January. He said in February that he did not want to talk about tariffs and would “prefer to try and act calmly.”

Arnault did acknowledge that LVMH had been “heavily solicited” to step up its production presence in the United States and this was being “seriously considered”.

Since tariffs were announced by Trump however, French President Emmanuel Macron has called on French businesses to suspend investment in the United States.

Cabanis said that the group could step up production of Louis Vuitton and Tiffany goods in the United States, where about a third of demand was locally produced. But she indicated there could also be price increases for consumers.

She said LVMH hoped that the suspension of tariffs would “enable some negotiation and bring some … positive outcome.”

Wine and spirits was the worst-affected sector for the maker of Moet & Chandon champagne and Hennessy, plummeting eight percent across the world, dragged down in particular by the cognac market.

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In 2024, the United States accounted for 34 percent of LVMH’s wine and spirits sales of 5.86 billion euros.

“Cognac was held back by weaker demand in China and the United States,” LVMH acknowledged.

The group behind Loewe and Dior likewise saw its worldwide fashion and leather goods revenue fall by four percent in the first quarter to 10.1 billion euros.

However perfumes and cosmetics revenue held steady at 2.17 billion euros, as did its watches and jewellery business at 2.48 billion euros.

Source: AFP