By Andrea Figueras

French luxury giant LVMH is scheduled to report results for the first half on Thursday. Here is what you need to know.

SALES FORECAST: The owner of high-end brands including Louis Vuitton and Dior is expected to post revenue of 39.97 billion euros ($46.75 billion), according to a poll of estimates by 16 analysts compiled by Visible Alpha. In the prior-year period, the group made revenue of 41.68 billion euros. The core fashion and leather goods division should report sales of 19.39 billion euros, compared with 20.77 billion euros previously.

NET PROFIT: The company, which is considered a bellwether for the luxury sector, should book net profit of 5.67 billion euros, according to the same consensus, down from 7.27 billion euros during the same months last year.

Shares have plunged around 33% over the past 12 months and are down nearly 27% since the start of the year.

WHAT TO WATCH

--TOURIST FLOWS: The difficult macroeconomic environment and adverse currency movements should have led to a decline in tourist flows to Europe and Japan during the second quarter, particularly from U.S. and Chinese consumers, analysts at Barclays said in a research note. This, coupled with a lack of improvement from local shoppers, should have had an impact on the company's performance, the analysts said. As a result, sales growth during the second quarter is expected to decelerate sequentially compared with the prior three months, Barclays said.

--LEATHER GOODS: The results should confirm the underperformance of the leather goods category compared with jewelry, UBS analysts said in a note to clients. Last week, Cartier owner Richemont reported an increase in sales for its fiscal first quarter, helped by strong demand for jewelry that allowed the group to defy the wider slowdown that is hurting most of its peers in the luxury space. Investors will focus on potential cost-control measures in the key fashion and leather goods business, as well as any progress in Tiffany's turnaround strategy, UBS analysts said.

--CHINA: UBS expects the focus to be on growth by consumer nationality, particularly among Chinese shoppers, after a meaningful drop in the first quarter. China, a country that once drove the industry's growth, is grappling with domestic economic woes that have prompted Chinese customers, especially those that are less affluent, to cut their luxury budgets, thus hurting most of the European high-end brands.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 22, 2025 08:18 ET (12:18 GMT)

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