LVMH Moët Hennessy Louis Vuitton (LVMUY) (FR:MC) stock fell sharply after the luxury giant reported lackluster sales in Q1 2025. The disappointing results have heightened investor concerns in a luxury sector already anxious about the potential impacts of U.S. President Donald Trump’s proposed tariffs. LVMH is the first major luxury brand to report quarterly results since Trump imposed sweeping tariffs on trade partners. Economists fear the growing trade war could hurt the luxury sector, with the U.S. and China being two of its biggest markets.
For context, LVMH reported a 3% year-over-year decline in its Q1 2025 revenue to €20.31 billion, missing the €21.21 billion forecast. Its key fashion and leather goods segment, including Louis Vuitton and Dior, brought in €10.11 billion, marking a 5% organic drop. The numbers were mainly hit as U.S. shoppers reduced spending on beauty products and drinks, while sales in China remained sluggish. LVMH’s sales in Asia, excluding Japan, dropped 11%.
LVMH Stock Drags Luxury Sector Down
Following the results, LVMH’s France-listed shares fell over 7%, while its U.S.-listed ADRs dropped 6% on Monday. Consequently, LVMH briefly lost its status as Europe’s top luxury company by market cap on Tuesday, overtaken by competitor Hermes (FR:RMS) (HESAF). This shift highlights growing investor pessimism around the luxury sector.
The disappointing earnings also hit the broader luxury sector, with Prada (PRDSF) down 2.6% and Kering (PPRUY) sliding 6% in U.S. trading. Meanwhile, the UK’s Burberry (UK:BRBY) is down over 2% as of writing.
Analysts Weigh in on LVMH Results
Bernstein’s four-star-rated analyst Luca Solca described LVMH’s performance as a “slow start” to 2025. The firm recently revised its outlook for the luxury sector, expecting a 2% sales decline this year, down from an earlier projection of 5% growth. If realized, it would signal the industry’s longest slump in more than 20 years.
Likewise, RBC analysts warned that LVMH’s weak results could heighten investor concerns about demand recovery and lead to more earnings downgrades amid tariff risks. Notably, analyst Piral Dadhania cut his 2025 sales forecast for LVMH from 3% growth to flat, citing the Q1 sales miss.
Meanwhile, Morgan Stanley analyst Edouard Aubin downgraded his rating on LVMH (MC) stock from Buy to Hold and cut the price target from €740 to €590.
Is LVMH a Good Stock to Buy?
Overall, MC stock has received a Moderate Buy rating on TipRanks, backed by 21 recommendations from analysts. It includes 13 Buys and eight Holds assigned in the last three months. The LVMH share price target is €735.19, which is 50% higher than the current trading level.
