Paris – LVMH, world number one luxury, reported on Thursday of an organic decline in its 4% sales in the second quarter, more than expected, reflecting the persistent gloom of a market that weighs on consumer confidence, while brands are faced with the threat of high customs duties on the part of the United States.

The French group reported sales at 19.5 billion euros between April and June, against 20.98 billion euros at the same period last year. According to a visible alpha consensus, analysts expected a less marked decline at -3%.

The group’s fashion and leather goods division, which includes the Louis Vuitton and Christian Dior houses and represents almost half of LVMH sales and most of the operating profit, fell 9% over a year, its fourth consecutive quarterly withdrawal, while analysts were tabling on a 6% drop.

Financial director Cécile Cabanis said he was, during a call with journalists, always “rather confident” for the rest of the year, because the group expects the commercial negotiations between the EU and the administration of the American president Donald Trump will soon bring good news.

A general potential of general customs of 15% on exports to the United States, would be a globally positive result, she added.

With the exception of wines and spirits, some LVMH brands still have the possibility of relying on their prices to fix the impact of customs duties, she said.

In China, where the real estate crisis has slowed the appetite for luxury products, the group noted a certain improvement, according to the financial director, which believes that the success of Louis Vuitton’s new flagship in Shanghai demonstrates that the brand still has the power to capture attention.

Most analysts in the luxury sector still consider the prolonged slowdown that has followed post-pandemic boom as cyclical, partly induced by the economic situation in China, inflationist and trade conflict with the United States.

However, concern about industry health is growing after two years of slowdown in sales and high -end brands are trying to revitalize their offer.

The Bain consulting firm estimates that luxury products worldwide will retreat from 2 to 5% this year, after a drop of 1% last year.

LVMH recently changed the creators of its Dior, Celine, Givenchy and Loewe houses, but time will be necessary to win.

(Report Mimosa Spencer and Tassilo Hummel, written by Kate Entringer, edited by Augustin Turpin)

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