European markets open lower as U.S. trade talks and earnings keep spotlight

LVMH shares were around 0.6% higher by 8:56 a.m. in London (3:56 a.m. ET).

LVMH reported a worse-than-expected 9% decline in its core fashion and leather goods segment in the second quarter. Overall, sales at the luxury giant declined by 4%.

For the first half, operating profit slumped by 15%, but that was still better than analysts were expecting.

The luxury group is also making a wider push to navigate U.S. tariffs — CEO Bernard Arnault confirmed that Louis Vuitton will open a new factory in Texas by 2027.

In an interview with the Wall Street Journal, Arnault said he was lobbying EU leaders to ease tensions with the Trump administration. Meanwhile, LVMH CFO Cecile Cabanis said the group may look to “moderate” price increases in order to mitigate the impact of tariffs. 

— Domi Suskova

Puma shares plummeted 18% Friday after the German sportwear brand posted worse-than-expected second-quarter sales and cut its full-year guidance, flagging the impact of U.S. trade tariffs.

In a preliminary updated after markets closed on Thursday, the retailer said it expects full-year sales to decline by a low-double digit percentage this year, compared with its prior forecast of sales growth in the low- to mid-single digit range.

Puma also said it expects to post an operating profit loss in 2025 — a huge swing from the 445 million euro ($523 million) to 525 million euro profit it forecast prior to assessing the impact of tariffs.

The company’s shares were down 18.4% by 8:23 a.m. London time (3:23 a.m. ET).

Read more here.

— Karen Gilchrist

European markets have just opened for the week’s final session, and regional shares are broadly moving lower.

The pan-European Stoxx 600 was last seen trading 0.5% lower, with all sectors and major bourses in negative territory.

The tariffs-sensitive autos sector is leading losses after industry giant Volkswagen cut its guidance, warning U.S. tariffs were eating into profits.

— Chloe Taylor

Michelin posted a 27.8% slide in net income in the first half of the year, a sharper decline than analysts had expected. The car parts maker said the threat of higher tariffs had led to a sharp contraction in North and Central America. However, the company backed its full year guidance, saying it expects the market for its tires to remain stable compared with last year. 

— Matt Ward-Perkins

Eni has posted a 25% drop in second quarter earnings, but still beat expectations as weaker oil prices offset a robust performance in its gas business. The Italian energy group confirmed a 5% increase in its full-year dividend, while revealing a lower-than-previously forecast capex for the year. 

— Michael Considine

Traton has cut its full year outlook as the German truck maker warns of a challenging environment as the EU and U.S. grapple over a trade deal. The company, which is majority owned by Volkswagen, also revealed that it is cutting production at some sites in response to weak demand. 

— Michael Considine

French drinks firm Remy Cointreau has posted 5.7% organic sales growth for its fiscal first quarter, ahead of analyst expectations, and marking the first quarter of growth since 2023. 

The cognac-maker reduced its forecasts for the impact of tariffs, improving its profit guidance for the full year.

— Matt Ward Perkins

Germany’s Volkswagen on Friday lowered its full-year guidance and reported a sharp drop in second-quarter profit, as the auto giant navigates the disruptive impact of U.S. tariffs.

Europe’s biggest carmaker posted operating profit of 3.83 billion euros ($4.49 billion) for the three months through June, down 29% from 5.4 billion euros a year ago.

Analysts had expected second-quarter profit to come in at 3.94 billion euros, according to a Factset-compiled consensus.

Read the full story here.

— Sam Meredith

It’s set to be a slightly quieter day on the earnings front, but several big names have either reported ahead of the opening bell, or will do so later in the session.

Luxury behemoth LVMH, one of the region’s most valuable companies, reported lower-than-expected quarterly sales late on Thursday, while German sports apparel giant Puma warned this morning that it’s expecting to notch a loss this year on the back of a sales decline and the impact of U.S. tariffs. Elsewhere this morning, German auto giant Volkswagen cut its guidance, also citing President Donald Trump’s tariffs regime.

Also due to report today are British lender NatWest, French drinks giant Remy Cointreau and Italian energy firm Eni.

— Chloe Taylor

Good morning from London.

There’s just under an hour and a half to go until the final opening bell of the week, and regional indexes are currently looking poised to move into negative territory.

Futures tied to the German DAX, Italian FTSE MIB and French CAC 40 indexes were all last seen trading 0.2% lower. Those tied to London’s FTSE 100 were last heading marginally lower.

Regional shares ended the Thursday session higher, as investors focused on U.S.-EU trade talks, the European Central Bank’s widely anticipated interest rate hold and a flurry of corporate earnings.

— Chloe Taylor