LVMH’s Q1 profits plunged, missing forecasts amid cooling China demand, US tariffs.
Bernard Arnault drops from world’s richest to 7th richest, as LVMH stock slumps.
Macro headwinds—slowing Chinese demand, trade tensions, strip luxury’s growth veneer.
Luxury sales in Chinese markets are in steep decline (J-L Zimmermann, creative commons (Wikipedia).
Just like the little yellow bird warning of impending doom, is LVMH the herald of things to come? LVMH’s profits are in freefall, and even Bernard
Arnault is feeling the sting.
The
Profit Hangover Hits Hard
LVMH, the crown
jewel of luxury, has been the bearer of bad news in recent months: profits fell
17%
year‑over‑year, missing targets by 14% and dragging net income down to €12.55 billion.
Despite sales inching up 1% organically, stumbling performance in Wines &
Spirits and Fashion & Leather erased gains.
Why? A slump in
Chinese spending and looming US tariffs are squeezing margins across the sector.
China:
Hot Market Turns Lukewarm
LVMH’s vast
empire is increasingly reliant on affluent Chinese consumers—but that well has
run drier than expected. The company insiders warn that Asia, especially
China, is experiencing weak demand—Louis Vuitton and Dior included. A
broader data point: China’s
industrial profits dropped sharply year-over-year in May—signaling diminished
domestic finances and curtailed ultra‑luxury spending.
Tariff
Trouble on Two Fronts
Hong Kong
dealmaker dreams and champagne brunches face a new threat: tariffs. US
proposals to tax imports from Europe (10%) and heavy levies on Chinese parcels
are squeezing
both ends of the supply chain. LVMH has started passing those costs to
American shoppers, but pricier LV bags come at a risk: fewer impulse buys,
especially from “aspirational” consumers.
Bernard
Arnault’s Riches Take a Hit
Bernard Arnault, CEO of LVMH, by Jérémy Barande, Creative Commons (Wikipedia).
Bernard Arnault’s
fortune was once the stuff of legend—but the numbers don’t lie. Since topping
the wealth charts in 2023 and 2024, he’s
slid to 7th place as of this June. Bloomberg confirms his holdings have
been clipped by widespread LVMH stock bumps—shares have lost approximately 43.5%
since March 2023, wiping out over $164 billion in market cap.
When
Luxury Isn’t Resilient
Luxury isn’t
supposed to work this way. Historically impervious to cycles, brands like LVMH
are now showing cracks. Analysts
are revising growth expectations for 2025 down to flat or worse—a sector
that had been rebounding seems to be in trouble.
Finance buffs,
take note: when a luxury leviathan like LVMH falters, it’s not just a blip—it
signals macro unease. Cooling Chinese demand, escalating trade risks, and
shifting consumer tastes are combining into a rare profit hangover for the
sector.
Is there a silver
lining? Perhaps cost discipline and creative resets pave the way for renewed
2026 momentum. But for now, this isn’t just a slump—it’s a wake‑up call.
For more stories
around the edge of finance, visit our Trending section.
Just like the little yellow bird warning of impending doom, is LVMH the herald of things to come? LVMH’s profits are in freefall, and even Bernard
Arnault is feeling the sting.
The
Profit Hangover Hits Hard
LVMH, the crown
jewel of luxury, has been the bearer of bad news in recent months: profits fell
17%
year‑over‑year, missing targets by 14% and dragging net income down to €12.55 billion.
Despite sales inching up 1% organically, stumbling performance in Wines &
Spirits and Fashion & Leather erased gains.
Why? A slump in
Chinese spending and looming US tariffs are squeezing margins across the sector.
China:
Hot Market Turns Lukewarm
LVMH’s vast
empire is increasingly reliant on affluent Chinese consumers—but that well has
run drier than expected. The company insiders warn that Asia, especially
China, is experiencing weak demand—Louis Vuitton and Dior included. A
broader data point: China’s
industrial profits dropped sharply year-over-year in May—signaling diminished
domestic finances and curtailed ultra‑luxury spending.
Tariff
Trouble on Two Fronts
Hong Kong
dealmaker dreams and champagne brunches face a new threat: tariffs. US
proposals to tax imports from Europe (10%) and heavy levies on Chinese parcels
are squeezing
both ends of the supply chain. LVMH has started passing those costs to
American shoppers, but pricier LV bags come at a risk: fewer impulse buys,
especially from “aspirational” consumers.
Bernard
Arnault’s Riches Take a Hit
Bernard Arnault, CEO of LVMH, by Jérémy Barande, Creative Commons (Wikipedia).
Bernard Arnault’s
fortune was once the stuff of legend—but the numbers don’t lie. Since topping
the wealth charts in 2023 and 2024, he’s
slid to 7th place as of this June. Bloomberg confirms his holdings have
been clipped by widespread LVMH stock bumps—shares have lost approximately 43.5%
since March 2023, wiping out over $164 billion in market cap.
When
Luxury Isn’t Resilient
Luxury isn’t
supposed to work this way. Historically impervious to cycles, brands like LVMH
are now showing cracks. Analysts
are revising growth expectations for 2025 down to flat or worse—a sector
that had been rebounding seems to be in trouble.
Finance buffs,
take note: when a luxury leviathan like LVMH falters, it’s not just a blip—it
signals macro unease. Cooling Chinese demand, escalating trade risks, and
shifting consumer tastes are combining into a rare profit hangover for the
sector.
Is there a silver
lining? Perhaps cost discipline and creative resets pave the way for renewed
2026 momentum. But for now, this isn’t just a slump—it’s a wake‑up call.
For more stories
around the edge of finance, visit our Trending section.
Louis Parks has lived and worked in and around the Middle East for much of his professional career. He writes about the meeting of the tech and finance worlds.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Executive Interview | Jas Shah | FMLS:25
Executive Interview | Jas Shah | FMLS:25
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
