On January 27, French luxury conglomerate LVMH Moët Hennessy Louis Vuitton announced its full-year results for fiscal 2025. While the Group maintained solid overall performance amid ongoing geopolitical tensions and macroeconomic uncertainty, a slowdown in its largest profit driver—the Fashion & Leather Goods division—became increasingly evident.
For 2025, LVMH reported revenue of €80.8 billion, down 5% year on year, or down 1% on an organic basis. Organic revenue growth in the fourth quarter came in at 1%, in line with the third quarter. Although some signs of improvement emerged in the second half of the year, the pace of recovery remained limited.
Profit from recurring operations totaled €17.8 billion, representing an operating margin of 22%. Despite the impact of unfavorable currency movements, profitability remained at a high level. Group share of net profit reached €10.9 billion, while free cash flow increased 8% year on year to €11.3 billion.
Fashion & Leather Goods: Impact of the Tourism Reversal
By business group, Fashion & Leather Goods—the Group’s largest revenue contributor—posted a decline in 2025. In 2024, results had been supported by strong tourist spending driven by the weak yen, particularly in Japan, but this effect reversed in 2025.
Although profit from recurring operations in the division declined 13% due to currency headwinds, the operating margin remained exceptionally high at 35%. This performance underscores the continued effectiveness of LVMH’s high-value business model and brand strength, which remains resilient without relying on price competition.
Louis Vuitton continued to demonstrate strong appeal across both product and storytelling through collections by Nicolas Ghesquière and Pharrell Williams. The opening of The Louis in Shanghai—a cruise-ship-shaped experiential space—emerged as a symbolic project, translating the Maison’s spirit of travel into architecture and immersive experience.
The launch of La Beauté Louis Vuitton, led by Pat McGrath, as well as the creation of 24 Trophy Trunks produced as an official partner of Formula 1®, further highlighted the fusion of craftsmanship and contemporary luxury.
Christian Dior entered a new chapter with the appointment of Jonathan Anderson as Creative Director across haute couture, men’s and women’s collections. His debut shows attracted record attention, while new store openings in New York, Los Angeles and Beijing further strengthened the Maison’s global presence.
Wines & Spirits: Champagne Holds, Cognac Faces Headwinds
Revenue in the Wines & Spirits business declined 5% on an organic basis, while profit from recurring operations fell 25%. Following several years of exceptional growth, the demand slowdown observed since 2023 continued into 2025.
Trade tensions and tariff issues in China and the United States weighed heavily on cognac demand, particularly for Hennessy. By contrast, the Champagne business maintained strong competitiveness, with LVMH’s Champagne houses accounting for 22% of total Champagne AOC shipments. Provence rosé wines also continued to outperform the global rosé category.
Across the division, Maisons continued to invest in long-term brand desirability while advancing structural programs aimed at improving efficiency and reducing costs.
Perfumes & Cosmetics: Profitability Gains Through Selectivity
Revenue in the Perfumes & Cosmetics division was stable on an organic basis, while profit from recurring operations rose 8%, lifting the operating margin to 8.9%. The improvement reflects a strategy focused on innovation and selective retail distribution rather than mass expansion.
Parfums Christian Dior benefited from the success of Miss Dior Essence and Dior Homme, while Sauvage retained its position as the world’s best-selling men’s fragrance. Guerlain and Givenchy also delivered steady results through extensions of their core iconic lines.
Watches & Jewelry: High Jewelry as a Key Growth Driver
The Watches & Jewelry division recorded organic revenue growth of 3% in 2025. Tiffany & Co. continued to strengthen its iconic collections while renovating its store network, with HardWear, Knot, and Bird on a Rock performing particularly well. Its Blue Book high jewelry collection achieved unprecedented results.
Bvlgari built momentum around Serpenti through immersive exhibitions, while its Polychroma high jewelry collection delivered record sales of high-value pieces. Chaumet and TAG Heuer also enhanced brand equity through their signature lines and high-profile event activations.
Selective Retailing: Sephora Leads Growth
The Selective Retailing division posted 4% organic revenue growth, with profit from recurring operations up 28%. Sephora was the primary growth engine, expanding both revenue and profit while consolidating its position as the global leader in beauty retail.
Ongoing investments in omnichannel capabilities, approximately 100 new store openings, and the successful introduction of new brands supported growth. At DFS, operational streamlining improved profitability, while the restructuring of Greater China operations marked a strategic turning point.
Looking Ahead to 2026
Commenting on the outlook for 2026, Chairman and CEO Bernard Arnault stated: “In 2026, in an environment that remains uncertain, our Maisons’ ability to inspire dreams – coupled with the highest levels of vigilance with regard to cost management, and our environmental and social commitments – will once again be a decisive asset underscoring our leadership position in the luxury goods market.”
He further emphasized that, as an entrepreneurial family group, LVMH remains committed to long-term sustainable creativity, prioritizing high-quality products, exceptional experiential spaces, and the transmission of craftsmanship to future generations—continuing to refine the intrinsic value of its brands beyond short-term performance fluctuations.
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