LVMH sales dip as Trump tariffs dent luxury tastes

Luxury giant LVMH's sales fell two percent to 20.3 billion euros ($23 billion) in the first quarter of 2025, the company said on Monday. US President Donald Trump's tariffs shook the global economy.

The producer of Louis Vuitton bags and Dom Perignon champagne, owned by Europe's richest man Bernard Arnault, generates a quarter of its revenue in the United States.

Despite posting decent numbers in fashion, watches, and jewellery in the country, LVMH saw a "slight decline" in overall US sales, the firm said in a statement—without giving a figure for that fall.

In his so-called April 2 "Liberation Day," Trump announced many tariffs on trading partners worldwide, including a 20-percent duty on European Union goods, before backtracking and suspending their implementation for 90 days.

"We all need to... stay very calm because we are in unknown territories," LVMH's chief financial officer, Cecile Cabanis, told analysts.

"The worst is never certain."

Arnault and two of his children were prominent figures at Trump's inauguration in January. He said he did not want to discuss tariffs in February and would "prefer to try and act calmly."

Arnault acknowledged that LVMH had been "heavily solicited" to step up its production presence in the United States and that this was "seriously considered."

However, since Trump announced tariffs, French President Emmanuel Macron has called on French businesses to suspend investment in the United States.

Cabanis said that the group could step up production of Louis Vuitton and Tiffany goods in the United States, where about a third of demand is locally produced. However, she indicated that there could also be price increases for consumers.

She said LVMH hoped that the suspension of tariffs would "enable some negotiation and bring some ... positive outcome."

Wine and spirits were the worst-affected sector for Moet & Chandon champagne and Hennessy maker, plummeting eight percent worldwide, particularly by the cognac market.

In 2024, the United States accounted for 34 percent of LVMH's wine and spirits sales of 5.86 billion euros.

"Cognac was held back by weaker demand in China and the United States," LVMH acknowledged.

The group behind Loewe and Dior saw its worldwide fashion and leather goods revenue fall by four percent in the first quarter to 10.1 billion euros.

However, perfumes and cosmetics revenue held steady at 2.17 billion euros, as did its watches and jewellery business, which was 2.48 billion euros.