The financial results for the first quarter of 2025, published in recent weeks, clearly show that trade voltages and geopolitical uncertainties put a strain on performance of leading luxury fashion companies.
The French luxury goods group LVMH recorded a drop in sales of three percent compared to the previous year. The mode & leather goods division – one of the main growth drivers of the group – developed particularly weakly with a minus of five percent. The company attributed this development to the “challenging geopolitical and economic environment” and referred to declining sales in the United States and Asia, while Europe achieved slight growth. Christian Dior also reported a slight decline in quarterly sales. The reason is “disturbed geopolitical framework” as well as a declining growth in China and the USA.
In contrast, Hermès was able to increase his turnover by seven percent in the first quarter of 2025 compared to the previous year – albeit less than from analyst: expected inside. The company benefited from persistently high demand, especially in Europe, and refers to the strength of its long -term business model. At the same time, Hermès admitted potential challenges, for example through newly announced US import tariffs. The company wants to counter this with a price increase that is due to come into force in May 2025.
Hermès has also overtaken LVMH in terms of market capitalization as the most valuable luxury company in the world. This shift occurred on April 15, 2025, when the market value of LVMH after the publication of disappointing quarterly figures fell briefly among Hermès.
The Italian luxury company Moncler Spa again reported a stable development. Sales rose by one percent to 829 million euros. While the Moncler brand increased by two percent, the Stone Island brand, which belongs to the group, recorded a minus of five percent. Both brands developed positively in Asia, whereas the performance in the EMEA and North and South America was weaker.
The Italian company Brunello Cucinelli was also convincing from 10.5 percent to EUR 341.5 million in the first quarter of 2025. Despite the global uncertainties, the company confirmed its positive outlook for the overall year. For autumn/winter 2025 it also announced a revised price list for the US market.
This short overview article was created by a AI tool based on articles that were published on Fashionunited this week (by fashionunited, AFP and dpa).
This article was used with digital tools translated.
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