Hennessy Demand Softens as LVMH Posts Mixed First-Quarter 2025 Trends
LVMH reported mixed first-quarter 2025 trends on April 16, and hennessy sat on the softer side of the ledger as wines and spirits saw weaker demand. Fashion and leather goods continued to underpin results, leaving investors to weigh whether strength in the group’s biggest profit engine can offset pressure elsewhere.
LVMH Fashion and Leather Goods
The company said fashion and leather goods kept supporting the quarter. That matters because the division tends to generate the group’s highest margins, and LVMH said its 2024 full-year results showed solid organic revenue growth there.
LVMH also said demand for Louis Vuitton and Dior handbags, shoes and ready-to-wear collections drove those 2024 results. Store traffic remained healthy in key metropolitan areas in 2024, although some regions experienced more volatile tourist flows.
Wines and Spirits Demand
LVMH said wines and spirits saw softer demand in the first quarter, putting pressure on a business that includes hennessy. The group positions its brands in the premium and ultra-premium price segments, so a weaker read-through in this division can alter how much growth investors expect from the portfolio outside fashion.
The company manages more than 70 prestigious brands across fashion, leather goods, jewelry, perfumes, cosmetics, wines, spirits and selective retail. That breadth gives it room to absorb uneven demand, but it also means the first-quarter update exposed how differently its businesses are moving at the same time.
US and China Demand
On April 17, investors were gauging how resilient high-end spending would be in the important US and Chinese markets. Those regions matter because LVMH said the United States is an important market for fashion, leather goods and cosmetics, while Asian markets including mainland China, Hong Kong and Japan are significant for high-end accessories and duty-free sales.
The split between strong fashion and leather goods and softer wines and spirits leaves the market focused on whether demand weakness is isolated or broadening. If high-end spending holds up in the US and China, the quarter points to a group still led by its most profitable division; if not, the weaker read in wines and spirits could carry more weight in the next trading update.
