LVMH Misses on Sales and Profit. It’s a Warning for Luxury Demand.

A Louis Vuitton luxury boutique in Paris, France, on Tuesday, July 22, 2025. (Cyril Marcilhacy/Bloomberg)

LVMH Moët Hennessy Louis Vuitton’s second-quarter revenue missed expectations, sending a warning for luxury demand.

LVMH’s second-quarter sales fell 4% from a year ago to €19.5 billion ($23 billion). Analysts polled by FactSet were projecting sales of €19.6 billion for the quarter.

This is the second consecutive quarter in which LVMH’s sales fell short of expectations. The company’s revenue has slightly missed consensus estimates in five of the past six quarters, according to FactSet.

Revenue for the first half of 2025 was €39.81 billion, compared with consensus estimates calling for €39.87 billion.

Net income for the past six months was €5.7 billion euro, lower than estimates calling for €5.9 billion. LVMH only reports profit twice a year.

CEO Bernard Arnault said the company showed “solidity” in the current economic environment. Consumer demand was “solid” in Europe and “stable” in the U.S., the company said. But Arnault noted that LVMH was heading into the second half of the year with “great vigilance.”

As the world’s largest luxury conglomerate, LVMH is often regarded as a bellwether for the industry, and investors have been looking to its quarterly reports for any signs that luxury demand is rebounding after a prolonged slump. Thursday’s report suggests it isn’t.

Indeed, LVMH’s fashion and leather goods segment—its biggest segment by sales—saw revenue and profit decline in the first half of 2025, pointing to soft demand among core luxury shoppers. The company also noted that the first half of 2024 was boosted by strong growth in tourist spending, particularly in Japan, which weakened in 2025.

LVMH stock, which is listed on the Paris stock exchange, closed 2% lower Thursday. The U.S. depositary receipt was down 3% to $558.12.

The company will pay an interim dividend of €5.50 a share ($6.47) on Thursday, Dec. 4.

Write to Sabrina Escobar at sabrina.escobar@barrons.com