The Louis, a museum-like space in the form of a cruise ship in Shanghai, has been a crowd puller.

French luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton generated revenue of €80.8 billion in 2025, “a solid performance,” claimed the company in a disrupted global economic and geopolitical environment. This assessment was made despite a -5% (reported) fall in revenue versus 2024. Organic revenue was down -1%*.

In travel retail, the company has a major stake in DFS Group, whose Greater China duty-free retail business is being sold to China Tourism Group Duty Free, in particular the Gallerias in Hong Kong and Macau. DFS has also withdrawn from the ‘seven-star’ Yalong Bay project. LVMH said: “At DFS, initiatives to streamline operations helped achieve a major improvement in profitability, despite business activity still being held back by prevailing international conditions.” The company, however, did not clarify whether “a major improvement” meant the retailer was actually profitable again.

LVMH’s selective retailing division, whose businesses include Sephora, DFS Group, and Le Bon Marché, saw sales rise by +4%, while profits from recurring operations soared to +28%. As in the past, LVMH noted “a remarkable performance by Sephora, which continued to achieve growth in both revenue and profit”, offsetting DFS.

LVMH product divisions

Across the other four product business units—wines and spirits, fashion and leather goods, perfumes and cosmetics, and watches and jewellery—only hard luxury saw growth (of +3%). Bvlgari had another record year and, in watches, TAG Heuer enjoyed a high-profile presence at Formula 1 events as part of the partnership entered into in 2024.

Wines & Spirits was down -5%, continuing a slowdown in demand observed since 2023. However, LVMH noted “good resilience in champagne but weaker demand for cognac”. The company’s maisons continue to invest in the long-term desirability of their brands and launched a programme aimed at boosting efficiency and reducing costs.

Revenue at the biggest division, fashion and leather goods, also fell by -5%, though there was a pick-up in H2. Profit from recurring operations was down 13%, mainly affected by unfavourable currency fluctuations. The operating margin remained high, at 35%, and Louis Vuitton kept pushing creativity, reflected in the latest fashion shows by Nicolas Ghesquière and Pharrell Williams, as well as the popular The Louis, a museum-like space in the form of a cruise ship in Shanghai.

The beauty business group was flat (0%), though profit from recurring operations surged by +8%. In fragrances, Parfums Christian Dior benefited from the launches of Miss Dior Essence and Dior Homme, and Sauvage remained the world’s best-selling men’s fragrance.

Will LVMH see a better 2026?

Despite the tough geopolitical and macroeconomic environment, LVMH said “it remains confident and will pursue its brand development-focused strategy, underpinned by continued innovation and investment as well as an extremely exacting quest for desirability”.

Bernard Arnault, Chairman and CEO of LVMH, commented: “In 2026, in an environment that remains uncertain, our maisons’ ability to inspire dreams – coupled with the highest levels of vigilance with regard to cost management, and our environmental and social commitments – will be a decisive asset, underscoring our leadership position in the luxury goods market.”

[* All percentages following this one are organic, not reported]

READ MORE: DFS makes ‘difficult decision’ to exit Hawaii

READ MORE: LVMH sees improvement in Q3, but still not out of the woods