Luxury Giant LVMH Faces Sales Slump Amid Economic Uncertainty

LVMH, the world's top luxury group, reported a 3% sales decline in the first quarter due to hesitant consumer spending in an unstable economy. The company's fashion and leather goods division, which contributes significantly to its profits, saw a 5% decrease in sales.

LVMH, the global luxury powerhouse, announced a 3% drop in first-quarter sales, highlighting a downturn in the sector as consumers shy away from high-end purchases amid economic instability.

With reputable brands like Louis Vuitton, Dior, and Bulgari, the group's revenues for the first quarter were 20.3 billion euros ($23.08 billion), falling short of the anticipated 2% growth, as stated by VisibleAlpha consensus estimates.

The fashion and leather goods segment, integral to LVMH's revenue and profit, witnessed a 5% slump, particularly struggling in markets like the U.S. and Japan. The industry braces for prolonged challenges as U.S. recession fears, heightened by President Trump's tariff policies, linger.

(With inputs from agencies.)