The luxury group LVMH had to accept a decline in sales from two percent to 20.3 billion euros in the first quarter of 2025. The company cited the company the economic turbulence triggered by new US tariffs, which affected global demand.
LVMH, manufacturer of luxury brands such as Louis Vuitton and Dom Pérignon, achieves around a quarter of its turnover in the United States. Although the group recorded solid results in the areas of fashion, watches and jewelry there, according to the company, there was still a “easy decline” of the overall sales on the US market. In his message, LVMH did not give specific figures.
At the so-called “Liberation Day” on April 2, US President Donald Trump surprisingly announced a number of new import duties on goods from different countries-including a 20 percent customs duty on products from the European Union. A few days later, however, the US government exposed the implementation for 90 days.
“We all have to stay very quiet because we are in unknown terrain,” LVMH CFO Cécile Cabanis told analyst: inside. “The worst is never certain.”
More production in the USA?
LVMH owner Bernard Arnault and two of his children were one of the prominent guests at Trump’s inauguration in January. In February, Arnault had emphasized that he wanted to avoid customs discussions and “prefer to act calmly”. At the same time, he admitted that LVMH was “strongly pushed” to expand its production capacities in the United States – a step that is “seriously considered”.
After the threat of customs, French President Emmanuel Macron had called for domestic companies to initiate planned investments in the United States for the time being.
Cabanis explained that LVMH could expand local production for brands such as Louis Vuitton and Tiffany in the USA – so far, around a third of the products requested there have been manufactured. However, it also provided possible price increases for consumers: in the prospect. The suspension of the tariffs “opens up a chance to negotiate that will hopefully lead to a positive result,” continued Cabanis.
In the fashion and leather goods segment, which also includes brands such as Dior and Loewe, sales worldwide fell by four percent to 10.1 billion euros. Wine and spirits division with a decline of eight percent-especially due to weaker cognac sales. The areas of perfume and cosmetics (2.17 billion euros) as well as watches and jewelry (2.48 billion euros) developed stably.
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