Solid Results for LVMH that turnover of € 39.8 billion in the first half of 2025, showing strong flexibility despite the ongoing global geopolitical and economic disruption.
The world’s leading luxurious freight group had the benefits of a recurrent operation of € 9 billion in a period of six months, reflecting an operating margin of 22.6%. Operating cash flow reached EUR 4 billion, which reached 29% from the previous year.
With the increase in the scope and currency for continuous consolidation, local demand was solid in Europe. Revenue in the United States was stable. Japan reported low results after a strong 2024 base increased with tourist expenses. The rest of Asia maintained similar trends last year, improvement in local sales in the second quarter.
The net profit for the group was € 5.7 billion, which was 22% under the first half of 2024.
Category Performance
Wines & Spirits revenue dropped 8% to €2.59 billion, as the division continued to feel the impact of trade tensions in the U.S. and China. Champagne showed sequential improvement, while cognac remained weak.
Fashion & Leather Goods remained the Group’s largest contributor, with €19.1 billion in revenue, down 8% year-on-year. Local customer demand was stable, but tourist spending, particularly in Japan, declined versus the prior year. The division maintained a very high operating margin.
Perfumes & Cosmetics stayed stable at €4.1 billion in revenue. The segment continued to drive innovation across fragrance, skincare, and makeup. Dior, Guerlain, and Givenchy all expanded their high-end lines.
Watches & Jewelry held revenue steady at €5.1 billion. Profit declined due to investments in store renovation and communication, including the continued global rollout of Tiffany & Co.’s retail concept and Bvlgari’s Year of the Snake campaigns.
Sales of selective retail trade, including Sapora and DFS, had € 8.6 billion on sale. Sipora showed strong income and increased growth, and strengthened market management and omnicenial strategy. DFS improved profitability through cost reduction, including the closure of the gallery in Venice.
Economic Summary
Compared to the first half of 2024, the LVMH turnover fell by 4%, while repetitive activities fell 15%. Net financial loans fell to € 10.2 billion, and equity increased to € 66.9 billion.
In the division, the decline in the recurrent profits was led by alcohol and spirits (-33%), fashion and teacher articles (-18%), watches and jewelry (-13%) and perfume and beauty toilets (-4%). In contrast, selective retailing increased by 12%.
Outlook for 2025
LVMH said it remains confident heading into the second half of the year. The Group will continue to focus on strengthening brand desirability and maintaining its strategy of quality and excellence across all divisions.
An interim dividend of €5.50 per share will be paid on December 4, 2025.
The Group stated its strategy of innovation and craftsmanship, paired with long-term focus and selective retailing, will support continued leadership in global luxury goods.