French luxury giant LVMH Moet Hennessy Louis Vuitton announced a revenue total of €80.8 billion (approximately $96.96 billion) for the fiscal year 2025, marking a 5% decline year-on-year (YoY) and a 1% decrease on an organic basis. This downturn has been attributed to adverse currency effects and a difficult global market landscape.
Profit from recurring operations was reported at €17.8 billion, resulting in an operating margin of 22%, which was negatively impacted by unfavorable currency trends. The company’s net profit fell by 13% to €10.9 billion, while operating free cash flow increased by 8% to €11.3 billion. Additionally, LVMH reduced its net financial debt by 26%, bringing it down to €6.9 billion, highlighting effective cash management.
Regionally, LVMH experienced a drop in sales within Europe during the latter half of the year. In contrast, the United States reported growth, driven by strong domestic demand. Japan saw a decline compared to 2024, a year bolstered by increased tourist spending due to a weaker yen. However, Asia (excluding Japan) exhibited a “noticeable improvement” compared to the prior year, returning to growth in the second half.
Despite an overall decline for the year, LVMH’s performance improved in the latter half, with organic revenue growth of 1%. This positive trend was seen across various business segments after a slowdown that began in 2023. The fourth quarter also recorded 1% organic revenue growth, consistent with the third quarter, indicating a stabilization towards year-end.
In the Fashion & Leather Goods division, revenue decreased YoY in 2025, yet LVMH reported improvements in the second half due to strong local consumer support, as 2024’s performance had been significantly boosted by tourist-related demand, especially in Japan. Profit from recurring operations dropped by 13%, mainly due to currency fluctuations, but the division still achieved a substantial operating margin of 35%. LVMH emphasized the strength of Louis Vuitton’s product offerings and experiential marketing, including The Louis in Shanghai, as well as robust brand momentum linked to fashion shows and new retail concepts. The creative evolution of Dior, major store openings, and renewed leadership at brands such as Celine, Loewe, Givenchy, and Fendi have also revitalized the portfolio.
“Once again in 2025, LVMH demonstrated its solidity and effective strategy upheld by its highly engaged teams. The Group was buoyed by the loyalty and growing demand shown by our local customers. This momentum was once again underpinned by the powerful desirability of our brands, which embody creative passion and the pursuit of the utmost quality, and by our ambition of offering our customers extraordinary stores and cultural experiences, as demonstrated by The Louis in Shanghai, and our House of Dior stores in a number of cities around the world,” stated Bernard Arnault, chairman and CEO of LVMH.
“As we look to 2026, in a still uncertain environment, our Maisons’ ability to inspire dreams combined with a strong focus on cost management and our environmental and social commitments will be a vital asset reinforcing our leadership in the luxury goods market. We will maintain our entrepreneurial spirit as a forward-looking family group dedicated to sustainable creativity in high-quality products, exceptional spaces, and the long-term preservation of our remarkable craftsmanship,” Arnault added.
In Selective Retailing, LVMH achieved 4% organic revenue growth and a 28% increase in profit from recurring operations, pushing the operating margin up by 2 percentage points to 9.7%. The DFS division showed signs of stabilization, with efficiency improvements boosting profitability despite weak international market conditions. In January 2026, LVMH entered into an agreement with China Tourism Group Duty Free to acquire DFS’s operations in Greater China, including the Gallerias in Hong Kong and Macau.
The luxury group also made strides in its Life 360 environmental initiative, enhancing circular design efforts. An impressive 41% of materials used in its products and packaging were obtained through recycling, an increase of 8% from 2024. The share of certified raw materials also rose, with cotton at 84% and wool at 76%.
Looking ahead, LVMH remains optimistic for 2026 despite ongoing geopolitical and macroeconomic uncertainties. The group will continue focusing on brand development, innovation, disciplined cost management, and long-term sustainability, with the goal of reinforcing its leadership position in the luxury goods market.