Luxury Market Faces Headwinds: LVMH Sales Dip, Hermes Gains

LVMH, the world's largest luxury conglomerate led by Bernard Arnault, is experiencing a slowdown in sales. First-quarter revenue for 2025 saw a 3% decrease, totaling €20.3 billion. This decline is attributed to weakened demand in key markets, including the U.S. and Asia.

In a notable shift, Hermes briefly surpassed LVMH in market capitalization on Tuesday, April 15, 2025. Hermes' market value reached €243.65 billion, exceeding LVMH's €243.44 billion. This comes as LVMH grapples with slowing demand, particularly in the U.S. and China.

Analysts are revising growth forecasts for the luxury sector downwards, citing a combination of factors. Geopolitical risks and potential economic recession are contributing to a more cautious outlook. LVMH's 2024 sales reached €84.7 billion, with an operating profit of €19.6 billion, while Hermes reported sales of €15.2 billion and an operating profit of €6.2 billion for the same period.