According to seven people familiar with the discussions, LVMH has quietly mobilized its legal and commercial teams to secure preferential treatment in the Chapter 11 proceedings of Saks Global. The luxury conglomerate, which supplies up to 20% of Saks’ high-end inventory by value, has argued that any delay in vendor payments could trigger a 12% drop in full-price merchandise deliveries. LVMH’s filing on February 10 highlighted its €5.8 billion annual wholesale shipments and warned that disruptions would erode Saks’ contribution to LVMH’s estimated €13 billion in North American retail sales for fiscal 2025. Industry observers note that this coordinated effort underscores LVMH’s confidence in leveraging scale to protect its working capital and preserve distribution channels.

LVMH’s flagship spirits brand Hennessy has finalized a collective bargaining agreement with unions representing 1,800 production and logistics workers at its Cognac facilities. The deal, ratified on January 28, compensates staff for up to €4,500 in lost bonuses from fiscal 2024, when volume shipments fell by 3.2% to 160 million bottles. Under the agreement, Hennessy will increase base wages by 2.5% over two years and introduce a new productivity bonus tied to a target of 165 million bottle equivalents in calendar 2026. Company insiders say the settlement mitigates strike risks ahead of peak spring bottling season and preserves margins on a vintage portfolio that generated an estimated €3.2 billion in revenues last year.

Credit analysts have downgraded LVMH’s debt rating from A2 to A3, citing a deceleration in luxury goods demand and weakening alcohol consumption trends. In its full-year 2025 results released on January 23, LVMH reported Q4 organic revenue growth of 2.8%, down from 6.1% a year earlier, and full-year sales of €87.6 billion, up 5.4% on a constant–currency basis. The downgrade reflects concerns that core fashion labels may see only 1–3% growth in 2026, while global per capita spirits consumption is forecast to contract by 0.5% CAGR through 2028. Analysts warn that prolonged softness in key markets—particularly Greater China, which accounted for 18% of 2025 revenues—could pressure free cash flow generation and valuation multiples in the near term.