The ADRs of luxury goods maker LVMH Moet Hennessy Louis Vuitton SA (EPA:LVMH) (OTC:LVMUY) dropped more than 6% on Monday following the release of its Q1 results. Total organic sales declined 3% to EUR 20.311 billion, missing analyst expectations of 2% growth.
Q1 Performance Overview
-
Total Organic Sales:
-
Fell 3% to EUR 20.311 billion
-
Analysts had anticipated 2% growth
-
-
Segment Highlights:
-
Fashion & Leather Goods: Sales fell 5% to EUR 10.108 billion
-
Wines & Spirits: Sales declined 9%; Champagne dipped slightly, while Cognac suffered from weaker demand in China and the U.S.
-
Perfumes & Cosmetics: Organic sales dropped 1%
-
Watches & Jewelry: Sales remained flat year-over-year
-
Selective Retailing: Sales were down 1% organically
-
Regional Performance
-
Europe: Recorded growth on a constant consolidation and currency basis.
-
United States: Experienced a slight decline despite strong performance in key segments.
-
Japan: Sales were down compared to Q1 2024, following strong growth in Chinese consumer spending last year.
-
Rest of Asia: Comparable trends to the previous year.
Analysts’ Reaction
-
Morgan Stanley downgraded LVMH shares to Equal Weight following the report.
-
They forecast a -3% organic sales growth for Q2 2025, a sharp change from their previous estimate of +2%.
-
Analysts warned that if the projection materializes, it would be the first time in over 30 years that LVMH’s Fragrance & Luxury Goods division records four consecutive quarters of sales contraction.
-
They noted that a softer global macro environment and subdued demand from China are likely to keep the industry’s top-line performance anemic over the next 12 months.
Market Context
The recent decline in LVMH’s Q1 performance comes amid broader macroeconomic challenges, including a softer global environment and pricing pressures. The ongoing weakness in demand from key markets such as China has intensified concerns about luxury sales going forward.
For In-Depth Company Insights
For further financial metrics and detailed company analysis on LVMH, investors can refer to the
đź”— Company Rating Company Information API from Financial Modeling Prep.
