On January 25, LVMHF shares tumbled 7.5% in early trading after the company reported fourth-quarter organic revenue growth of just 1%, flat year-over-year, and full-year revenue down 1%. While Q4 sales of €22.7 billion topped the consensus estimate of €22.2 billion, investors had anticipated stronger momentum after peers such as Richemont and Burberry posted double-digit percentage beats. Rival Kering shares also fell 5%, underscoring sector-wide pressure on luxury conglomerates reliant on fashion and leather goods.

LVMHF’s fashion and leather goods division, which drives roughly half of Group profits, saw organic sales decline 5% over 2025, down from a 1% decline the previous year. Profit from recurring operations for the full year fell 9% to €17.8 billion, translating to an operating margin of 22%. Free cash flow rose 8% to €11.3 billion, but investors were disappointed by margin contraction in key regions and feared cost pressures would linger into 2026.

Chairman and CEO Bernard Arnault cautioned that geopolitical tensions and unpredictable economic shifts would complicate forecasting in 2026. He emphasized that while LVMHF remains ‘optimistic in the medium term,’ short-term visibility is limited by currency swings, trade frictions and policy changes in major markets. Arnault’s remarks contrasted with more bullish guidance from competitors, amplifying investor wariness about the Group’s near-term growth trajectory.

For 2025, LVMHF reported consolidated revenue of €80.8 billion, down 5% on a reported basis and 1% organically. The Wines & Spirits segment saw organic revenue decline 5%, with recurring profit down 25% to €1.0 billion, while Perfumes & Cosmetics delivered flat organic growth and an 8% rise in recurring profit to €0.7 billion. Selective Retailing outperformed with 4% organic growth and a 28% jump in recurring profit to €1.8 billion. Net financial debt fell 26% to €6.9 billion, providing balance-sheet flexibility as the Group navigates uncertain market conditions.