In the face of a disrupted global environment marked by geopolitical instability and economic headwinds, LVMH Moët Hennessy Louis Vuitton has demonstrated resilience and adaptability.
The world’s leading luxury goods conglomerate posted revenue of EUR 20.3 billion in the first quarter of 2025, a 2% decline year-over-year on a reported basis, or 3% organically. While several business segments held steady or showed slight gains, the Wines & Spirits category recorded a notable 9% organic decline, signaling shifts in global consumption patterns and market dynamics.
Wines & Spirits: A Sector in Transition
Revenue from LVMH’s Wines & Spirits segment fell to EUR 1.305 billion, down from EUR 1.417 billion in Q1 2024. This performance reflects ongoing challenges in key markets and broader changes in consumer behavior.
- Champagne experienced a moderate decline, attributed to the normalization of demand following pandemic-driven peaks. Nevertheless, Moët & Chandon drew global attention with its high-profile return as the Official Champagne of Formula 1, underscoring its strategic visibility efforts.
- Cognac sales were hindered by softened demand in the United States and China, historically two of the most important markets for this category. Market uncertainties and cautious consumer sentiment contributed to the decline.
- In contrast, LVMH’s Provence rosé wines portfolio had a strong start to the year, highlighting ongoing interest in lighter, lifestyle-oriented wine styles.
These trends suggest a recalibration in the fine wine and spirits market, with consumers increasingly seeking balance—whether in alcohol content, occasion, or value. As demand for premium and luxury drinks becomes more nuanced, innovation and adaptability will be key to maintaining long-term market relevance.
Broader Group Performance: Stability Across Key Segments
Outside of Wines & Spirits, LVMH’s diversified portfolio helped cushion the overall impact:
- Fashion & Leather Goods, the Group’s largest segment, declined by 4% reported (-5% organic), though brands like Louis Vuitton and Christian Dior continued to innovate and lead with compelling collaborations and launches.
- Perfumes & Cosmetics and Selective Retailing were broadly stable. Sephora saw strong in-store momentum, while Guerlain, Dior, and Givenchy maintained solid performance through fragrance and skincare innovations.
- Watches & Jewelry remained steady, buoyed by the ongoing transformation of Tiffany & Co., high-visibility campaigns from Bvlgari, and product launches from TAG Heuer, Hublot, and Zenith during LVMH Watch Week.
Outlook: Vigilance and Confidence in Luxury Leadership
Despite macroeconomic volatility, LVMH continues to focus on innovation, selective distribution, and brand development. The Group’s wide geographical footprint and balanced business portfolio provide resilience against regional fluctuations.
The first quarter performance of the Wines & Spirits segment, although under pressure, highlights important shifts—particularly the rebalancing of demand for traditional luxury drinks like Cognac and Champagne, alongside emerging interest in rosé and lifestyle wines.
With an eye on global trends and consumer expectations, LVMH is expected to continue evolving its approach to wines and spirits. Future strategic moves may include increased investment in low- and no-alcohol alternatives, diversified wine origins, and experiential branding to sustain growth in this segment.
Conclusion
LVMH’s Q1 2025 performance underscores the complexities of operating in a global luxury market. While the Wines & Spirits segment faces short-term challenges, the Group’s overall strength, driven by iconic brands, innovation, and market adaptability, supports its enduring leadership. For wine and spirits professionals, LVMH's strategic movements provide a valuable lens into how the luxury drinks landscape is transforming in real time.
Source: LVMH