LVMHF reported fourth-quarter organic revenue growth of just 1%, matching the prior year but trailing peers such as Richemont and Burberry, which delivered stronger sequential gains. Revenue of €22.7 billion beat consensus estimates of €22.2 billion, yet shares tumbled over 7% in early trading as investors focused on narrower margins in the fashion & leather goods division and a cautious management tone. Fashion & leather sales declined 5% organically for the full year, worse than the 1% drop logged in 2024, while perfumes & cosmetics held flat and selective retailing rose 4%. Geopolitical headwinds in Asia, currency fluctuations and weaker tourist spending were cited as key challenges in the quarter.

For the full year, LVMHF generated revenue of €80.8 billion, down 1% organically and 5% on a reported basis, reflecting a tough comparison to 2024’s tourist-driven growth. Profit from recurring operations declined 9% to €17.8 billion, translating to an operating margin of 22%. Operating free cash flow rose 8% to €11.3 billion, demonstrating disciplined cost management and efficient working capital. Wines & spirits revenue fell 5% organically, driven by softer cognac demand, while watches & jewelry achieved 3% organic growth and selective retailing delivered an above-sector-average 4% gain. Net profit (group share) stood at €10.9 billion, down 13%. Net financial debt was reduced by 26% year-on-year to €6.9 billion.

Chairman and CEO Bernard Arnault warned that 2026 is likely to be “disrupted” by geo-economic events and unpredictable policy decisions, making short-term forecasting difficult. He underlined the group’s medium-term optimism, supported by the gradual recovery in China—where Asia ex-Japan returned to growth in the second half of 2025—and robust local demand in the US. Arnault highlighted ongoing investments in brand desirability, selective retail expansion and cost discipline as pillars for sustaining market leadership, while noting that investor sentiment remains contingent on further margin improvement and the return of aspirational consumers.

LVMHF continued to accelerate its LIFE 360 sustainability program, achieving an 8 percentage-point increase in recycled materials usage (41% of total inputs) and substantial gains in raw material certification—cotton up to 84%, wool to 76%, and near-100% for grapes and diamonds. Water withdrawal at production sites fell 19% versus 2019 levels, and biodiversity initiatives restored 4.3 million hectares of habitat. The group maintained strong social impact, with over 211,000 employees worldwide, 40,000 direct jobs in France and more than €5.5 billion in corporate tax contributions. Apprenticeship programs trained nearly 3,800 craftsmen, reinforcing LVMHF’s long-term commitment to heritage skills and sustainable growth.