LVMH Faces Slowdown as Shoppers Pull Back

LVMH, the leading luxury group, announced a 3% drop in first-quarter sales, underperforming expectations due to a challenging economic environment. Despite a previous 1% growth and anticipation for 2% growth, economic pressures affected consumer spending, impacting sales of luxury brands under its umbrella.

LVMH, the world's leading luxury conglomerate, reported a 3% decrease in sales for the first quarter, defying initial projections. The downturn underscores a significant slowdown in the luxury sector as economic uncertainties prompt consumers to restrain their spending.

Sales for the renowned French company, which owns illustrious brands such as Louis Vuitton, Dior, Bulgari, and Hennessy, amounted to 20.3 billion euros (approximately $23.08 billion) for the three-month period ending in March. This marks a contrast to the 1% growth noted in the previous quarter.

Analysts had anticipated a 2% growth for the first quarter of 2025, according to VisibleAlpha's consensus estimates. However, the current economic climate has led to unexpected adjustments in consumer behavior and luxury spending.

(With inputs from agencies.)