Luxury giant LVMH posts 5% dip in annual revenue amid luxury market stabilization

French luxury group LVMH posted a 5% dip in annual revenue on a reported basis and 1% organically, as the retail giant navigated a volatile geopolitical and economic environment while signs of stabilization emerged in key markets.

Nathaniel Alexander Abaño January 28, 2026

LVMH Chairman and CEO Bernard Arnault said the company demonstrated “solidity and discipline” in 2025, citing brand desirability, cost control, and investment in retail experiences and creativity. Image source: LVMH / Facebook

French luxury group LVMH reported Tuesday a full-year revenue of $88.1 billion (€80.8 billion), down 5% on a reported basis from the previous year and 1% organically, as the retail giant navigated a volatile geopolitical and economic environment while signs of stabilization emerged in key markets.

Profit from recurring operations reached $19.4 billion (€17.8 billion), while operating free cash flow rose 8% to $12.3 billion (€11.3 billion).

Group net profit attributable to shareholders came in at $11.9 billion (€10.9 billion), down 13% from 2024, with currency headwinds weighing on margins. LVMH’s operating margin stood at 22%, and net financial debt fell 26% to $7.5 billion (€6.9 billion), strengthening the balance sheet.

Q4 results

Fourth-quarter revenue hit $24.8 billion (€22.7 billion), beating market expectations and marking the second consecutive quarter of organic growth, with revenue up 1% organically, matching the third quarter’s pace.

Excluding Japan, Asia returned to growth in the second half of the year, while the United States continued to expand on solid local demand. Europe softened in the latter half, and Japan declined after an exceptionally strong 2024 driven by tourist spending.

By business group, Fashion & Leather Goods, LVMH’s largest profit engine, posted $41.2 billion (€37.8 billion) in revenue, down 5% organically, though margins remained high at 35%. Wines & Spirits fell 5% organically, reflecting weaker cognac demand amid trade tensions, while Perfumes & Cosmetics held steady on innovation and selective distribution.

Watches & Jewelry grew 3% organically, supported by Tiffany & Co. and Bvlgari, while Selective Retailing rose 4%, driven by a standout performance at Sephora, which continued to gain global market share.

Cautious outlook

Chairman and CEO Bernard Arnault said LVMH demonstrated “solidity and discipline” in 2025, citing brand desirability, cost control, and investment in retail experiences and creativity. However, he cautioned that “2026 won’t be simple,” pointing to an unpredictable macroeconomic backdrop.

Despite the uncertainty, LVMH said it remains confident in its ability to reinforce its global leadership in 2026, supported by diversified geographic exposure, strong local demand, and continued investment in innovation, craftsmanship, and sustainability. The group will propose a €13 per share dividend for 2025, including an interim payment already made.

(Dollar conversions based on an approximate €1 = $1.09 exchange rate.)