LVMH talks up ‘strong desirability’ despite sales slip
The Louis Vuitton owner credits its “solid” performance in the face of “continuing geopolitical crises”, noting reasons for caution in the months ahead.
LVMH claims brand “desirability” and cultural impact are driving progress at the luxury goods giant, despite a dip in sales.
Speaking today (28 January) on the release of the firm’s 2025 full year results, chief executive Bernard Arnault cited the “strong desirability” of the group’s brands, pointing to major retail and cultural initiatives designed to drive momentum.
LVMH reported revenue of €80.8bn (£70.2bn) in 2025, with organic sales down 1% for the year. The luxury group pointed to resilient demand despite a volatile economic and geopolitical backdrop. Operating profit for the year fell 9% to €17.7bn (£15.4bn), while net profit declined 13% to €10.9bn (£9.5bn).
Arnault claimed the group had delivered a “solid” performance in a difficult environment, adding that conditions would remain challenging in 2026.
Burberry enjoys ‘increased confidence’ as sales grow
Fashion and leather goods, LVMH’s largest division, saw organic sales decline 5% to €37.8bn (£32.8bn) for the year, despite a marked improvement during the third quarter.
At Louis Vuitton, the opening of a landmark “ship” installation in Shanghai has drawn tens of thousands of visitors each week and was described by the CEO as a “great success” for the brand.
Creative output was also highlighted as a source of renewed heat. Arnault said Dior’s latest haute couture show marked a powerful start to a new creative chapter, adding Louis Vuitton’s recent menswear collection by Pharrell Williams combined commercial appeal with high-profile craftsmanship.
LVMH reverses decline with plan to invest in brand ‘desirability’
Organic sales in the wines and spirits division fell 5% to €5.4bn (£4.7bn), with Arnault highlighting a particularly tough year for Cognac, affected by tariffs in both China and the US. Champagne proved more resilient in a softer market, with Moët & Chandon benefiting from high visibility partnerships, including the group’s renewed global tie-up with Formula 1.
Under the agreement, Moët & Chandon now celebrates every Grand Prix on the podium, a move Arnault described as “very promising” for the brand. Veuve Clicquot also recorded volume growth in its largest markets, while rosé wines continuing to perform strongly.
Watches and jewellery returned to growth in the second half, driving sales up 3% for the year to €10.5bn (£9.1bn). Bvlgari delivered “quite outstanding figures” towards the end of 2025, while Tiffany & Co continued its multi-year transformation towards higher value jewellery.
According to LVMH, higher value jewellery sales at Tiffany have tripled over four years, supported by the rollout of new store concepts which now represent around a third of the network and more than 40% of sales.
The business also called out the “remarkable performance” of Sephora, which LVMH described as the “unchallenged world leader” in prestige beauty retail. Sephora reportedly delivered strong growth and profitability in the second half, investing in its omnichannel strategy and expanding its retail network with the opening of 100 stores in 2025.
