Core Insights - LVMH's stock rose 5.3% despite reporting declines in revenue and profits for the first half of 2025, indicating that results were better than feared and investors may believe the stock has bottomed after significant declines [1][2]. Financial Performance - LVMH's revenue declined 3% year-over-year on an organic basis, while operating profits fell 15% in the first half of 2025 [3]. - The Fashion & Leather Goods segment, which accounts for nearly half of LVMH's revenue and about 80% of operating profits, experienced an accelerating decline, with first-half revenue down 7% [4]. - The company reported a healthy operating margin of 22.6%, attributed to its strong brand portfolio and diversification, despite the overall revenue and margin decline [8]. Market Context - Prior to the earnings report, LVMH's stock had fallen 14.6% year-to-date and was over 45% below its all-time high, reflecting significant pessimism due to U.S.-China trade tensions [2]. - Investors appear to believe that the recent stock decline has created a solid bottom, viewing LVMH as a potential turnaround story if economic conditions improve in the U.S. and China [9].

Core Insights - The Christian Dior Group reported a revenue of €39.8 billion for the first half of 2025, reflecting a 4% decrease compared to the same period in 2024, amidst a challenging geopolitical and economic environment [1][3][12] Financial Performance - Profit from recurring operations for the first half of 2025 was €9 billion, resulting in an operating margin of 22.6%, while net profit was €5.9 billion, with the Group share of net profit at €2.4 billion [3][4] - Key financial metrics showed a decline in revenue and profit across most business segments, with notable changes as follows: - Revenue decreased from €41.7 billion in 2024 to €39.8 billion in 2025, a 4% drop [3][5] - Profit from recurring operations fell from €10.6 billion to €9 billion, a 15% decline [3][5] - Net profit, Group share, decreased from €3 billion to €2.4 billion, a 22% drop [3][5] - Operating free cash flow increased by 29% to €4 billion [3][4] Business Segment Performance - **Wines & Spirits**: Revenue declined by 8% to €2.6 billion, with a significant drop in profit from recurring operations by 33% to €524 million, attributed to trade tensions affecting key markets [6][7] - **Fashion & Leather Goods**: Revenue decreased by 8% to €19.1 billion, with profit from recurring operations down 18% to €6.6 billion, although local customer demand remained resilient [7][8] - **Perfumes & Cosmetics**: Revenue remained stable at €4.1 billion, with a slight decline in profit from recurring operations by 4% to €425 million, driven by innovation and a selective retail approach [9][10] - **Watches & Jewelry**: Revenue was stable at €5.1 billion, but profit from recurring operations fell by 13% to €762 million due to ongoing investments in store renovations [10][11] - **Selective Retailing**: Revenue grew slightly to €8.6 billion, with profit from recurring operations increasing by 12% to €876 million, driven by Sephora's strong performance [11][12] Market Trends and Outlook - Local demand in Europe and the United States remained solid, while Japan experienced a decline due to a high base from tourist spending in 2024 [2][4] - The Group anticipates maintaining a strategy focused on enhancing brand desirability and product quality in the face of geopolitical and economic uncertainties [12][13]

Core Insights - LVMH Moët Hennessy Louis Vuitton reported a revenue of €39.8 billion for the first half of 2025, reflecting a 4% decrease compared to the same period in 2024 [5][6] - Profit from recurring operations was €9 billion, resulting in an operating margin of 22.6% [3][5] - The Group's net profit amounted to €5.7 billion, down 22% year-over-year [5][6] Financial Highlights - Revenue for the first half of 2024 was €41.7 billion, while it decreased to €39.8 billion in 2025, marking a 4% decline [5] - Profit from recurring operations fell from €10.7 billion in 2024 to €9 billion in 2025, a decrease of 15% [5][8] - Net profit attributable to the Group decreased from €7.3 billion in 2024 to €5.7 billion in 2025, a decline of 22% [5][8] - Operating free cash flow increased by 29% to €4 billion [5][6] - Net financial debt decreased by 16% from €12.2 billion in 2024 to €10.2 billion in 2025 [5] Revenue by Business Group - Wines & Spirits revenue decreased from €2.8 billion in 2024 to €2.6 billion in 2025, an 8% decline [5][9] - Fashion & Leather Goods revenue fell from €20.8 billion in 2024 to €19.1 billion in 2025, also an 8% decline [5][10] - Perfumes & Cosmetics revenue slightly decreased from €4.1 billion in 2024 to €4.1 billion in 2025, a 1% decline [5][11] - Watches & Jewelry revenue remained stable at €5.1 billion in both years [5][13] - Selective Retailing revenue was flat at €8.6 billion in 2025 compared to €8.6 billion in 2024 [5][14] Business Group Performance - The Wines & Spirits segment experienced a decline in revenue and profit, with a notable drop in cognac demand, although champagne showed improvement [9] - The Fashion & Leather Goods segment demonstrated resilience with local customers, maintaining a high operating margin despite a decline in revenue [10] - The Perfumes & Cosmetics segment remained stable, driven by strong innovation and selective retailing strategies [11][12] - The Watches & Jewelry segment saw stable performance, with ongoing investments in store renovations and successful product launches [13] - The Selective Retailing segment achieved growth in revenue and profit, particularly through Sephora's strong performance [14] Outlook - LVMH remains confident in its long-term potential and will continue to focus on enhancing brand desirability and product quality amid geopolitical and economic uncertainties [15][16]