LVMH reported second-quarter revenue of €19.5 billion, a 4 % decline that missed market expectations for a 3 % drop. The French group’s crucial Fashion and Leather Goods unit—home to Louis Vuitton and Dior—contracted 9 % organically, its steepest fall since the pandemic, while Wines and Spirits slipped 4 %. First-half net profit fell 22 % to €5.70 billion, although the company maintained an interim dividend of €5.50 per share. Management said it remains “vigilant” for the rest of the year and views a proposed 15 % U.S. tariff on European luxury goods as a manageable outcome. Rival Kering fared worse. Second-quarter revenue fell 15 % on a comparable basis to €3.70 billion, dragged down by a 25 % plunge at Gucci, its largest brand. First-half net profit tumbled 46 % to €474 million and recurring operating income dropped 39 % to €969 million. The group, which is preparing for the arrival of incoming chief executive Luca de Meo in September, said additional price increases could follow in the autumn to offset weaker demand and forthcoming U.S. tariffs. Hermès continued to outshine its peers. Revenue rose 9 % at constant exchange rates to €3.91 billion in the second quarter, lifted by a 15 % jump in leather goods and a 5 % increase in Asia-Pacific sales. First-half recurring operating profit reached €3.33 billion. The contrasting results underline a widening gap within the luxury sector as middle-income shoppers pull back, China and Japan soften, and investors look for signs of recovery ahead of the key year-end trading period.