the luxury conglomerate, saw a modest sales increase in Q2, driven primarily by strong demand in the U.S. despite weaker European performance due to the ongoing Iran conflict. While jewelry and watches performed well, fashion and leather lagged, as shares fell, reflecting confidence challenges
- Country:
- United States
In the second quarter, luxury behemoth LVMH posted a slight sales increase, buoyed by strong demand in the United States, despite a weaker performance in Europe, impacted by the Iran conflict affecting tourism.
The owner of major brands like Louis Vuitton and Dior reported a 3% rise in sales to €19.5 billion, driven by burgeoning U.S. demand, amid the economic benefits from tech and AI booms. The Watches & Jewellery division was a standout, with a sales surge of 11%, while Tiffany and Bulgari led the growth. European brands are intensifying focus on the U.S., trying to capitalize on the wealth from soaring stock markets.
Despite these gains, LVMH’s largest segment, fashion and leather goods, lagged with a modest 1% growth, hindered by Middle Eastern conflict impacts and falling short of expectations. LVMH’s shares dipped post-results, highlighting investor unease about a definitive recovery for the €400 billion luxury sector.
