Following today’s release of LVMH’s figures for the three months ending 31 December 2025; Sharon Iles, senior apparel aAnalyst at GlobalData, a leading data and analytics company, offers her view: “LVMH’s revenue fell 4.6% to €80.8bn for the full-year 2025, highlighting persistent struggles within the overall luxury market. LVMH’s Q4 sales fell 5.1%, worsening compared to Q3 and bringing about some concerns from investors, which led the group’s share price to fall c.7% in early morning trade. CEO Bernard Arnault also signalled caution ahead, noting the company would limit costs and expenses as the year ahead is expected to be challenging.
“Asia (excl. Japan)’s organic sales declined 4%, underperforming the total group results, hindered by cautious spending in China following economic headwinds. However, LVMH continued its aggressive retail expansion in the region, including the landmark ship-shaped Louis Vuitton store opened in Shanghai in June 2025 and Dior’s new Beijing flagship in December 2025, which started to gain traction. Japan’s organic revenue fell 12%, making it the worst-performing region, albeit against exceptionally strong prior-year comparatives and exacerbated by the yen volatility. The US’ organic growth remained flat, outperforming the rest of the group thanks to resilient demand from ultra-high-net-worth consumers. Europe’s organic sales declined just 1%, but the region’s growth trajectory worsened through the year, due to declining tourism from the US and weakening consumer confidence.
“The group’s largest division, Fashion and Leather Goods, saw revenue drop 8.0%, though the decline slowed progressively throughout the year. Pharrell Williams’ collaborations for Louis Vuitton menswear and Jonathan Anderson’s first Dior collection have generated significant buzz and cultural relevance throughout the year, with these creative successes slowly translating into commercial gains following widely positive receptions from both consumers and critics. The Selective Retailing division was LVMH’s best performing segment, with sale remaining flat, supported by Sephora which has managed to effectively capture spend from young consumers and capitalise on its position as a prestige beauty destination. The Wines & Spirits division, saw the most challenges, with sales falling 9.4%, hindered by a lack of demand in its key markets of China and the US, as well as tariff-related operational issues.”
