LVMHF shares opened down over 7% following the fourth-quarter disclosure that organic revenue in Q4 grew just 1%, matching last year’s level, while full-year revenue slipped 1%. Morning trade saw the stock weaken by as much as 7.5% after investors had anticipated a stronger margin recovery, especially after peers such as Richemont and Burberry surpassed expectations. Citigroup analysts noted that these rival results had lifted the bar for LVMH’s performance, and the failure to exceed consensus on margins triggered the sell-off.

In the quarter, LVMH reported revenue of €22.7 billion, beating consensus estimates of €22.2 billion, yet operating margin contracted due to higher input costs and promotional discounts in Europe. The United States remained a bright spot with low-double-digit local-currency growth driven by accessories and leather goods, while Japan declined as tourist spending faded once the yen stabilized. Ex-Japan Asia returned to growth in H2, but sales in mainland China remained below peak levels, underscoring ongoing volatility in the region.

CEO Bernard Arnault warned that fiscal 2026 will present a “disrupted” backdrop, citing geopolitical tensions and foreign-exchange swings as risks to forecasting. He emphasized cost discipline and selective inventory management as priorities and reiterated confidence in medium-term demand for the group’s 75 maisons, including Louis Vuitton, Dior and Tiffany & Co. LVMH closed 2025 with free cash flow of €11.3 billion, up 8%, and recurring operating profit of €17.8 billion, underscoring resilience despite short-term headwinds.