LVMH Strengthens Strategy Amid Challenges and Creative Renewal

Abu Dhabi, UAE – January 28, 2026:

In a complex global economic environment, LVMH has once again demonstrated the strength and resilience of its diversified business model. While full-year 2025 results reflected a slight decline compared with the previous year, the Group delivered robust cash-flow performance and continued to reinforce the global allure of its luxury brands.

For 2025, LVMH reported revenues of €80.8 billion, representing an organic decline of 1%. On a reported basis, sales fell by 5%, primarily due to adverse currency effects, as the stronger euro negatively impacted the conversion of international revenues. Despite these challenges, the Group maintained an impressive operating margin of 22%, underscoring the enduring profitability of its diversified operations.

Antoine Fraysse-Soulier, Market Analyst at eToro, commented: “LVMH’s performance in 2025 highlights outstanding cash-flow management and the sustained strength of its brand portfolio, even amid challenging macroeconomic and currency headwinds.”

A notable highlight of the year was operating free cash flow, which rose by 8% to €11.3 billion, enabling the Group to reduce its net debt by 26% and strengthen its financial position.

Selective Retailing proved to be a key growth driver, delivering 4% organic growth. Sephora, in particular, achieved remarkable results, reinforcing its leadership position and expanding its market share globally. In contrast, the Fashion & Leather Goods division recorded a 5% decline in sales. Nevertheless, this division maintained exceptional profitability, achieving an operating margin of 35%.

Beyond financial performance, LVMH reaffirmed its long-term strategic vision of transforming luxury purchases into cultural and emotional experiences. The Group continues to elevate its maisons into iconic destinations, including The Louis in Shanghai and new Tiffany & Co. flagship stores in Milan and Tokyo, enhancing local engagement and customer loyalty.

The year also marked a significant creative renewal, with the appointment of new artistic directors: Jonathan Anderson at Dior, Sarah Burton at Givenchy, and Michael Rider at Céline. This wave of fresh creative leadership aims to stimulate both commercial growth and media attention, reinforcing the Group’s reputation for innovation.

Simultaneously, LVMH is accelerating its expansion into Lifestyle and Sports sectors, highlighted by a ten-year partnership with Formula 1 and participation in the Osaka World Expo. These initiatives reflect the Group’s ambition to extend its luxury expertise beyond fashion, embodying the art of living in diverse experiences.

Looking ahead, LVMH enters 2026 with cautious optimism, backed by strong cash generation, disciplined financial management, and a clear strategic roadmap focused on innovation, global growth, and deepening consumer engagement.