LVMHF shares fell more than 7% in early Wednesday trading after the company reported fourth-quarter organic revenue growth of just 1%, matching last year’s pace but falling short of peer-beating benchmarks. Despite a slight sales beat—€22.7 billion versus consensus estimates of €22.2 billion—investors had anticipated stronger margins and a more bullish tone following recent surprises at Richemont and Burberry. The fashion and leather goods division, which accounts for the bulk of profits, saw organic sales decline 5% over the full year, amplifying concerns about pricing power and consumer fatigue in key markets.

For the full year, LVMHF reported revenue of €80.8 billion, down 1% on an organic basis and 5% in reported terms. Profit from recurring operations fell 9% to €17.8 billion, while operating free cash flow rose 8% to €11.3 billion, underscoring disciplined cost management. Selective retailing outperformed with 4% organic growth, driven by Sephora’s continued expansion, but Wines & Spirits suffered a 5% organic revenue decline and a 25% drop in operating profit due to softer cognac demand in China and the United States.

Chairman and CEO Bernard Arnault warned that “2026 won’t be simple,” citing an “unforseeable and disrupted” economic context. The company noted a return to growth in Asia (excluding Japan) during the second half of the year, yet flagged currency fluctuations and trade tensions as potential drags. While U.S. local demand remains solid and China’s recovery shows signs of picking up, analysts emphasize that luxury spending patterns remain uneven and that further earnings-per-share upgrades will be needed to justify current valuations.