Luxury powerhouse LVMH announced Monday that its second-quarter sales climbed as robust consumer spending in the United States helped counterbalance weaker demand in Europe and the Gulf region, where the ongoing Iran war has dampened activity.
The French conglomerate — which owns iconic brands including Louis Vuitton, Dior, and Bulgari — posted quarterly revenue of €19.5 billion (approximately $22.2 billion), a 3% increase after adjusting for currency fluctuations. That figure came in broadly consistent with what analysts had anticipated, according to Visible Alpha.
American shoppers were the primary engine of growth. U.S. sales jumped 6% in the second quarter, building on a 3% gain from the first three months of the year. European luxury brands have increasingly turned their attention to the United States, opening new retail locations and hosting high-profile fashion events to court wealthy consumers riding the wave of the AI and technology boom.
Despite the positive numbers, LVMH — the first major luxury company to release first-half results — may not fully ease investor concerns about whether the roughly $400 billion global luxury sector is truly pulling out of a two-year slump.
The company’s fashion and leather goods division, which accounts for the majority of its operating profit, recorded 1% organic growth. While that marked the division’s first quarterly increase in two years, it still fell short of analyst projections calling for a 1.7% rise. LVMH noted that the Iran war shaved 1 percentage point off growth in that division, though it said Dior was gaining traction under new creative director Jonathan Anderson.
Sales across Europe were flat during the quarter, steadying after a decline in the first quarter that was linked to reduced tourism tied to Middle East tensions.
For the full first half of the year, organic sales rose 2%, though reported sales dropped 3% to €38.6 billion. Operating profit fell 4% to €8.7 billion over the same stretch, even as the operating margin held relatively steady at 22.5%.
Shares in the French company, which is controlled by billionaire Bernard Arnault, have tumbled 28% since the beginning of the year, placing LVMH among the weakest-performing large-cap stocks in Europe.
