LVMH reported a drop in annual revenue for 2025 as a challenging global economic and geopolitical backdrop continued to exert pressure on the luxury sector. The group said consolidated revenue for the year totaled 20.8 billion, a 5 percent decline from the prior year, with organic revenue down 1 percent.
Market trading showed a muted reaction, with LVMHs American Depositary Receipts rising about 0.6 percent on Tuesday.
Geographically, the slowdown was most evident in Europe during the second half of the year. The United States returned to growth, supported by stronger local demand. Japan fell compared with the previous year, a period that had benefited from tourist spending, while the rest of Asia exhibited notable improvement.
Fourth-quarter results suggested some stabilization: organic revenue grew 1 percent to 2.7 billion. The second half of the year also delivered a 1 percent organic increase, a trend management attributed to improved performance across all business groups.
Profit from recurring operations retreated 9 percent to 17.8 billion for 2025, with the company noting the weight of currency fluctuations on operating performance. Net profit for the year was 10.9 billion. On a cash basis, operating free cash flow increased by 8 percent to 11.3 billion.
At the business-group level, Fashion and Leather Goods - LVMHs largest division - recorded an 8 percent decline in reported revenue, although the company emphasized that local demand remained resilient. Wines and Spirits faced weaker demand for cognac, while Selective Retailing delivered a strong performance in the period.
Chairman and CEO Bernard Arnault said the group had shown "solidity" in a disrupted environment and pointed to continued investment in brand desirability and innovation. Despite acknowledging uncertainty ahead of 2026, management said it aims to reinforce its leadership in global luxury.
Context for markets and sectors
The results highlight uneven demand across regions and product categories within the luxury sector, with implications for corporate earnings in consumer discretionary segments that include fashion, leather goods, wines and spirits, and luxury retailing.