The Wines & Spirits division of LVMH faced a challenging first half in 2025, reporting a notable 8% decline in revenue and a sharp 33% drop in profit from recurring operations compared to the same period in 2024.
These results reflect ongoing trade tensions and macroeconomic pressures in two of the industry’s most crucial markets: the United States and China.
According to the company’s H1 report, revenue decreased from EUR 2.807 billion in H1 2024 to EUR 2.588 billion in H1 2025, while operating profit fell from EUR 777 million to EUR 524 million. Despite the downturn, the group observed some resilience in champagne, especially in Q2, and continued solid performance from rosé wines produced in Provence.
Context and Contributing Factors
Much like in 2024, geopolitical uncertainty, tariff-related disruptions, and cooling consumer sentiment in key export markets weighed heavily on performance. In particular, cognac demand remained weak, exacerbating the overall decline. Trade tensions with the U.S. and sluggish recovery in China continued to restrict growth opportunities for high-end alcoholic beverages, particularly those heavily reliant on international sales channels and travel retail.
In response, LVMH’s Maisons launched ambitious initiatives aimed at reinforcing brand desirability and sustaining long-term consumer interest. These included large-scale marketing campaigns, innovation in packaging and formats, and a continued focus on premium positioning, all while implementing stringent cost control measures.
Strategic Response and Leadership Remarks
In his statement, Bernard Arnault, Chairman and CEO of LVMH, emphasized the group’s resilience in the face of adversity:
“LVMH showed solidity in the current context. We owe this to the power of our iconic brands and their boundless capacity for innovation while remaining true to their culture of incomparable artisanal craftsmanship.”
Arnault highlighted the group’s long-term strategy, built on quality, heritage, and innovation, which continues to be the compass for navigating volatile market conditions. He also reaffirmed the company’s commitment to excellence, noting that the second half of the year will be approached with vigilance and a clear focus on leadership in luxury.
Champagne Recovers, Cognac Lags
A sequential recovery in champagne sales during the second quarter brought some optimism. This was attributed to improved performance in Europe and selective Asian markets, where tourism and hospitality began to rebound. Meanwhile, the Provence rosé segment continued to perform well, buoyed by seasonal demand and premiumization strategies.
Conversely, cognac continued to underperform, largely due to inventory overhang and tepid demand in China and North America, regions previously driving its growth. The contrast between categories illustrates the uneven recovery patterns and differing consumer behaviors across markets.
Looking Ahead
The second half of 2025 remains uncertain. LVMH has pledged to maintain a disciplined yet dynamic approach, leveraging its strong brand equity and global distribution networks while being agile in adapting to shifting demand patterns. With a long-term vision rooted in craftsmanship and luxury excellence, the Wines & Spirits division aims to regain momentum in more favorable trade conditions.
Despite near-term challenges, LVMH remains confident in the enduring desirability of its products, the commitment of its teams, and its leadership in the global luxury wine and spirits market.
Source: LVMH