Luxury Empire in Freefall: Dior, Gucci, and Louis Vuitton Face a Billion-Dollar Crisis
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Luxury Empire in Freefall: Dior, Gucci, and Louis Vuitton Face a Billion-Dollar Crisis
The once-unshakable luxury giant LVMH is stumbling, revealing cracks in an empire long seen as invincible. At the end of 2022, its market value soared so high that Bernard Arnault, the founder and chairman controlling nearly half of the company’s shares, became the richest person in the world. But since then, its stock has taken a steep fall. LVMH — the powerhouse behind 75 brands including Louis Vuitton, Dior, Bulgari, and Tiffany & Co. — is facing a slowdown after the post-COVID boom. According to a semi-annual report released on July 24, 2025 , revenue fell by 4% compared to the same six-month period in 2024, while recurring operating profit plunged 15% to US$ 10.5 billion . Wine, spirits, fashion, and leather goods all saw declines, while watches, jewelry, perfumes, and cosmetics remained steady. LVMH insists it is showing resilience and maintaining strong innovation momentum despite turbulent geopolitical and economic conditions. Demand remains solid in Europe and stable in the U.S. …
