LVMH reported second-quarter revenue of €19.5 billion, a 4% year-on-year decline that missed analysts’ expectation of a 3% drop. On an organic basis, sales in the core Fashion and Leather Goods division fell 9%, the steepest quarterly contraction in three decades and below the forecast 7.8% decrease. Wines and Spirits revenue slipped 4%, a smaller setback than predicted, while overall first-half recurring operating profit reached €9.01 billion and net profit came in at €5.7 billion, down 22% from a year earlier. The board declared an interim dividend of €5.50 a share. Chief Financial Officer Cécile Cabanis said second-quarter sales were flat in the United States and showed "tangible improvement" in mainland China, but demand in Japan and wider Asia remained subdued. She cautioned that the group will approach the second half “with great vigilance” as consumer appetite for high-end goods stays fragile amid economic and geopolitical uncertainty. Amid negotiations over trans-Atlantic trade, Chief Executive Officer Bernard Arnault has been pressing European leaders to back a deal that would cap US tariffs at 15%, a level the company considers manageable. Arnault also told Reuters he plans to open a second Louis Vuitton factory in Texas by 2027, extending the group’s manufacturing footprint in the United States. Management said the ongoing probe into labour practices at Loro Piana in Italy is not expected to hurt sales. LVMH shares fell almost 4% after the earnings release, and JPMorgan lowered its price target to €525 from €540, underscoring investor concerns that the luxury slowdown will persist. The results, which follow several quarters of cooling demand, add to signs that the broader luxury sector faces a protracted period of weaker growth.