European luxury goods giant LVMH Moet Hennessy Louis Vuitton (MC) has reported disappointing financial results as growing economic and market uncertainty impacts high-net-worth consumers.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Saying that worries about the economy have curbed demand for luxury goods, LVMH, as the company is known, reported first-quarter revenue of €20.3 billion (US$23.1 billion), down 2% from a year earlier and below a consensus forecast that called for quarterly sales of €21.1 billion.
The Paris-based company doesn’t report profits on a quarterly basis. However, it said in a statement that its revenue fell on a constant-currency basis in all regions other than Europe. Sales decreased 3% from a year earlier in the U.S., 11% in Asia, and 1% in Japan. Within its home market of Europe, sales grew 2% year-over-year.
Widespread Declines
LVMH, which is known for its designer clothing, cosmetics and jewelry, said sales for all business segments fell in its latest quarter with the exception of its watches and jewelry unit. However, watch and jewelry sales were unchanged or flat from a year ago.
In its earnings statement, LVMH said that it “showed good resilience and maintained its powerful innovative momentum despite a disrupted geopolitical and economic environment.” Management added that the company remains “confident while staying vigilant.”
LVMH stock, which is listed on the Paris exchange, has declined 17% so far in 2025.
Is MC Stock a Buy?
The stock of LVMH has a consensus Moderate Buy rating among 21 Wall Street analysts. That rating is based on 13 Buy and eight Hold recommendations assigned in the last three months. The average MC price target of €735.19 implies 38.69% upside from current levels. These ratings are likely to change after the company’s financial results.
