LVMH reported a 5.9% drop in total revenue to €19.1 billion for the first quarter. The core Fashion and Leather Goods division saw a 2% organic decline. Currency headwinds and a 1% drag from Middle East conflicts pressured these results.
Sector peers Kering and Hermès also reported weak first-quarter sales. Analysts indicate that steep price hikes have priced out aspirational consumers. U.S. consumer sentiment reached a record low, further dampening high-end discretionary spending.
The top 10 European luxury companies lost a collective $176 billion in market capitalization since the end of 2025. These results confirm the difficult conditions facing the luxury segment and the XLY ETF.