First Q1 performances of luxury fashion companies impacted by Trump tariffs and geopolitical tensions
loading...
Financial news of the week: Trump Tariffs, Geopolitical Tensions Hit Luxury Sector
The first financial results of Q1 2025, reported this week, show that trade tensions and geopolitical uncertainty are weighing on the performance of key luxury fashion groups.
First Q1 results reveal slowdown across major fashion houses
LVMH posted a 3 percent decline in revenue compared to the same quarter last year. Its Fashion & Leather Goods division, one of the group’s main drivers, underperformed (-5 percent). The company attributed the results to a “challenging geopolitical and economic context,” noting revenue declines in the U.S. and Asia, while Europe recorded slight growth. Christian Dior, also part of the LVMH group, reported a mild drop in quarterly revenue, citing “disrupted geopolitical environments” and subdued growth in China and the U.S.
In contrast, Hermès stood out with a 7 percent year-on-year sales increase in Q1 2025, though growth came in lower than analyst expectations. The company pointed to solid demand, particularly in Europe, and continues to benefit from its long-term business model. Still, Hermès acknowledged potential headwinds, especially from newly announced U.S. tariffs, which it plans to counter with a price increase starting in May.
Moncler S.p.A. reported stable performance, with a 1 percent rise in revenues to 829 million euros. The Moncler brand grew by 2 percent, while Stone Island declined by 5 percent. Both brands saw growth in Asia, though performance was weaker in EMEA and the Americas.
Brunello Cucinelli also posted solid results, with a 10.5 percent sales increase in Q1 2025, reaching 341.5 million euros. While the company maintained its positive outlook for the year, it shared that for autumn/winter 2025 the company will work on the new price list in the US.
This short overview article was generated by an AI tool, based on articles published at FashionUnited (by FashionUnited, AFP and DPA) this week, and then edited.