LVMH Q4 Revenue at €22.7 Billion Outpaces Estimates as Fashion & Leather Goods Drop 5%
LVMH reported fourth-quarter revenue of €22.7 billion, beating LSEG’s €22.2 billion estimate, while full-year revenue declined 1% to €80.8 billion as organic sales were flat and Fashion & Leather Goods fell 5%. CEO Bernard Arnault warned 2026 will be “disrupted” despite Asia ex-Japan returning to growth in H2.
1. Fourth-Quarter Revenue and Organic Growth Exceed Expectations
LVMHF reported fourth-quarter revenues of €22.7 billion, topping LSEG consensus of €22.2 billion. Organic revenue grew by 1% year-on-year in Q4, matching Q3’s performance and signaling stabilization after two consecutive quarters of flat growth. Excluding Japan, the broader Asia region returned to growth in H2, contributing to the beat against analysts’ estimates.
2. Full-Year Results Show Slight Contraction but Strong Cash Generation
For the full year, LVMHF generated €80.8 billion in revenues, a 1% organic decline versus 2024. Profit from recurring operations totaled €17.8 billion, down 9% year-on-year, while net profit (Group share) stood at €10.9 billion, a 13% decrease. Operating free cash flow rose 8% to €11.3 billion, underscoring robust cash-flow conversion despite currency headwinds and a challenging macroeconomic backdrop.
3. Business-Group Trends and 2026 Outlook
The Fashion & Leather Goods division, which drives the bulk of LVMHF’s profits, saw a 5% organic sales decline for the year—worse than the 1% drop in 2024—reflecting muted local spending on leather and ready-to-wear. Watches & Jewelry posted 3% organic growth, while Selective Retailing grew 4% on the strength of its Sephora network. CEO Bernard Arnault cautioned that 2026 will face an "unpredictable" and "disrupted" environment, with European demand softening and China’s recovery still fragile despite early signs of stabilization.