LVMH, the world’s largest luxury group, reported a 3% drop in first-quarter sales on Monday, missing expectations and confirming a broader sector slowdown as shoppers pulled back on designer fashion amid a volatile economic climate.
LVMH misses Q1 targets as fashion and leather goods weaken. – LVMH
The French company behind high-end labels, including fashion houses Louis Vuitton and Dior, jewelry brand Bulgari, and Hennessy cognac, reported sales of €20.3 billion ($23.08 billion) for the three months ending in March.
The result compares with 1% growth in the fourth quarter and analyst expectations for 2% growth in the first quarter of 2025, according to VisibleAlpha consensus estimates. The fashion and leather goods division—home to Louis Vuitton and Dior and accounting for nearly half of group sales and over three-quarters of operating profit—posted a 5% fall in sales, well below expectations for a flat performance.
LVMH said fashion and leather goods sales saw a “slight decline” in the U.S., while Japan’s quarter was weaker than the comparable quarter a year ago, when Chinese-led growth boosted spending there.
Europe’s luxury players were counting on wealthy Americans to reignite growth for the sector at the start of this year, as the outlook for China, another crucial market, remained bleak.
However, with fears of a U.S. recession rising after President Donald Trump‘s recent tariff announcements sent stock markets and the dollar tumbling, the sector is bracing for what could become its longest slump in years.
The luxury sector, selling prized items to rich shoppers at high margins, is better positioned than other industries to use its pricing power to shield profits against Trump’s tariffs. If fully applied, the tariffs would include a 20% charge on European fashion and leather goods and 31% for Swiss-produced watches. Last week, Trump paused most of his tariffs for 90 days, setting a general 10% duty rate instead.
French fashion label Louis Vuitton has announced that its Cruise 2026 runway show will take place on May 22 at the Palais des Papes in Avignon, in southeastern France’s Provence-Alpes-Côte d’Azur region. Known for choosing architecturally striking and culturally significant venues, the brand will present the collection inside this Gothic monument, which is recognized as a French historic monument and a UNESCO World Heritage site.
The Palais des Papes in Avignon – Louis Vuitton
Nicolas Ghesquière, artistic director of women’s collections, continues his tradition of spotlighting exceptional architecture through fashion. For Cruise 2026, he has selected the Palais des Papes—an imposing 14th-century structure perched above Avignon—marking the first time a fashion show has ever occurred at the site. Commissioned by Pope Benedict XII in 1335, the palace was completed in less than two decades and spans more than 161,000 square feet with 25 public rooms.
Louis Vuitton’s Cruise—or resort wear—shows have long embraced a spirit of travel, discovery, and cultural heritage. Past collections were unveiled at iconic venues such as John Lautner’s Bob and Dolores Hope Residence in Palm Springs, Oscar Niemeyer’s Contemporary Art Museum in Niterói, I.M. Pei’s Miho Museum in Kyoto, and the Salk Institute in California. The Cruise 2026 show in Avignon follows earlier French presentations at Place du Palais in Monaco and the Fondation Maeght in Saint-Paul de Vence.
In keeping with its tradition of supporting cultural heritage and local communities, Louis Vuitton will also contribute to a public lighting project in Avignon. The initiative aims to enhance visibility and safety while celebrating the city’s architecture. It will illuminate the façades of the palace, the Avignon Cathedral, the Petit Palais, the Hôtel des Monnaies, and the Hôtel Calvet de la Palun.
The Palais des Papes is not only a historical site but also a hub for modern culture. It hosts world-class art exhibitions and is the main venue for the internationally renowned Festival d’Avignon, founded in 1947 by French actor and director Jean Vilar. By hosting Louis Vuitton’s Cruise 2026 show, the city of Avignon will also launch celebrations for the 25th anniversary of its historic center’s inclusion on the UNESCO World Heritage list.
U.S. President Donald Trump and Italian Prime Minister Giorgia Meloni met at the White House on Thursday, expressing shared confidence that the United States and the European Union will successfully negotiate a trade agreement. Their remarks came during the current 90-day suspension of newly proposed “reciprocal” tariffs announced earlier this month by Washington. The pause aims to give both sides space to negotiate terms.
Giogia Meloni and Donald Trump. – Reuters
Trump, who returned to office in January, has often criticized the EU’s trade policies. However, on Thursday, he struck a notably optimistic tone. “Of course, there will be a trade deal. They want to get it done. And we’re going to get it done. That’s exactly what I expect. And it will be a fair deal,” he told reporters during the Oval Office meeting with Meloni seated beside him.
“I’m 100% certain we’ll reach an agreement,” Trump added, marking one of his strongest public statements yet in support of a potential U.S.-EU trade pact.
Meloni, who has positioned herself as a diplomatic bridge between Washington and European leadership, echoed the sentiment. She affirmed her belief in a successful outcome, although she acknowledged that she cannot finalize a deal on behalf of the whole EU bloc.
French fragrance manufacturer Interparfums plans to raise prices in the United States by 6% to 7% beginning August 1 in response to the new 10% tariffs imposed on imported goods. The company manages the perfume lines of several global fashion brands, including Coach, Jimmy Choo, Montblanc and Lacoste.
From top left: Coach New York Eau de Parfum, Lacoste L.12.12 Rose, Montblanc Legend Eau de Parfum and Jimmy Choo Man Blue—licensed lines likely to see U.S. price increases of 6% to 7% starting August 1 due to new import tariffs. – DR
CEO Philippe Benacin made the announcement Thursday at the company’s annual shareholder meeting in Paris. “We haven’t run the full calculations yet since these measures were only finalized 48 to 72 hours ago, but I believe we’ll end up with an additional €5 to €6 million in expenses this year,” he told investors.
The U.S. is Interparfums’ largest market, accounting for 38% of its total revenue in 2024. Despite the anticipated impact of tariffs, Benacin shared a confident outlook. “In the U.S., we’ve had a very strong first quarter. You’ll see for yourself in a few days,” he said. Interparfums will publish its Q1 results on April 24.
Benacin also announced the renewal of a key licensing agreement with American fashion brand Coach, extending through 2031. In 2024, Coach perfumes generated €43 million in sales for Interparfums, making it one of the group’s top-selling licenses after Jimmy Choo, which brought in €56.3 million.
In total, Interparfums reported a 10% increase in net profit for 2024, reaching €129.9 million. The group also achieved an operating margin above 20% for the year.