This chart is two different stories wearing one trendline.
The first ten of those quarters are just the COVID bounce normalizing. That 44% in Dec 2021 was lapping a 2020 when LVMH revenue fell 17%. A global reopening that big happens once. Decelerating off that base was guaranteed by arithmetic. Nothing about the business had to weaken for the line to fall.
The real engine is hidden in how the boom was built. McKinsey found roughly 80% of the industry's growth from 2019 to 2023 came from raising prices rather than selling more units. LVMH pushed prices up around 30% and the cash-flush pandemic consumer paid it. Group revenue compounded about 33% a year from 2020 to 2022, almost entirely on price.
That same lever is now the constraint. The aspirational buyer who funded the boom got priced out, and China pulled back hard: Asia ex-Japan organic revenue dropped 11% in early 2025. You cannot keep raising prices on a customer who is already stretched.
Here is the part the slope hides. In 2024 revenue slipped about 2%, but operating income fell 16% and margin went from 26% to 22%. Price-led growth gives you violent operating leverage in both directions. On the way up it printed money. On the way down a 2% revenue dip cut profit eight times as hard, because the stores and the staff don't get cheaper when pricing stops doing the work.
The negative quarters at the end are the first clean read on real demand this company has shown in five years, now that price has stopped carrying the weight.
Aria Radnia 🇮🇷 (@ariaradnia)
LVMH the parent of Louis Vuitton, Dior, Fendi, Sephora and 70+ other luxury houses
Has now put up SIXTEEN consecutive quarters of de-accelerating growth
$LVMUY $LVMH $MC.PA
— https://nitter.net/ariaradnia/status/2068484844103831768#m