In a strained global macroeconomic environment, LVMH has once again demonstrated the resilience of its diversified, multi-sector business model. While full-year 2025 results showed a modest decline compared with the previous year, the Group delivered strong cash-flow performance and maintained the enduring appeal of its portfolio of brands.
The Group reported revenue of €80.8 billion, reflecting an organic decline of 1%. On a reported basis, sales fell by 5%, a decrease almost entirely attributable to unfavourable currency effects, as the strengthening euro weighed on the conversion of international revenues. Despite this impact, LVMH maintained a solid operating margin of 22%.
Commenting on the results, Antoine Fraysse-Soulier, Market Analyst at eToro, said: “LVMH’s 2025 performance highlights exemplary cash-flow management and the continued strength of its brands, even in a complex macroeconomic and currency environment.”
A key highlight of the year was operating free cash flow, which increased by 8% to €11.3 billion, enabling the Group to reduce its net debt by 26%.
Selective Retailing emerged as the Group’s primary growth engine, delivering organic growth of 4%. Sephora posted a particularly strong performance, further strengthening its global leadership position and market share. In contrast, the Fashion & Leather Goods division recorded a 5% decline in sales, although profitability remained highly resilient, with an operating margin reaching an impressive 35%.
Beyond the financial results, Bernard Arnault reaffirmed LVMH’s long-term strategy of transforming purchasing into a cultural and emotional experience. The Group continues to evolve its maisons into unique destinations, including The Louis in Shanghai and new Tiffany & Co. flagship stores in Milan and Tokyo, aimed at deepening local engagement and customer loyalty.
LVMH is also pursuing a significant creative renewal, marked by the appointment of new artistic directors, including Jonathan Anderson at Dior, Sarah Burton at Givenchy, and Michael Rider at Céline. This “creative shock” is designed to stimulate both commercial performance and media attention.
In parallel, the world’s leading luxury group is accelerating its expansion into new territories, particularly Lifestyle and Sport, through a ten-year partnership with Formula 1 and its participation in the Osaka World Expo, underscoring its ambition to extend the art of living beyond fashion.
Looking ahead, LVMH enters 2026 with heightened vigilance but undiminished confidence, supported by strong cash generation, disciplined financial management, and a clear strategic vision.
