LVMH reported revenue of €80.8 billion for the fiscal year ended December 31, 2025, down 5 percent from the prior year, according to its annual financial documents. Profit from recurring operations fell 9 percent year-over-year to €17.8 billion, while net profit attributable to the Group declined 13 percent to €10.9 billion. The results reflect softer demand in key markets and normalization following several years of elevated growth.
The Fashion and Leather Goods division remained LVMH’s largest business group, generating €37.8 billion in revenue and €13.2 billion in profit from recurring operations. Both figures declined year-over-year, with revenue down 8 percent on a reported basis and operating profit down 13 percent. The division’s operating margin stood at 35 percent, down from prior-year levels but still significantly higher than other segments within the Group.
LVMH attributed performance in the segment to solid local demand as tourist-driven spending moderated compared to 2024. The Group continued to invest in its core maisons, pointing to ongoing retail development, craftsmanship initiatives, and creative leadership transitions across brands including Louis Vuitton, Dior, and Loro Piana.
Selective Retailing Delivers Profit Growth
Selective Retailing was one of the few divisions to post profit growth in 2025. Revenue increased 4 percent on an organic basis, while profit from recurring operations rose 28 percent to €1.8 billion. Sephora was the primary driver, continuing to gain market share and expand its global footprint, with approximately 100 new store openings during the year.
LVMH highlighted Sephora’s focus on exclusive brand partnerships, omnichannel capabilities, and loyalty-based growth. Exclusive brands accounted for nearly half of Sephora’s portfolio in 2025. DFS, meanwhile, continued to be affected by uneven recovery in international travel, though profitability improved following cost and operational adjustments.
Watches, Jewelry & Wines/Spirits Face Continued Pressure
The Watches and Jewelry division reported largely stable revenue on a reported basis, with profit from recurring operations down 2 percent year-over-year. Performance was supported by Bvlgari and Tiffany & Co., including continued demand for high jewelry and progress in store renovations, but offset by broader market softness.
The Wines and Spirits business group experienced more pronounced declines. Revenue fell 9 percent on a reported basis, while profit from recurring operations declined 25 percent. LVMH cited weaker demand for cognac in the United States and China, as well as the impact of inventory normalization following several years of strong consumption.
Geographic Performance Shows Diverging Regional Trends
By geographic region of delivery, the United States and Asia (excluding Japan) each accounted for 26 percent of Group revenue in 2025. Europe (excluding France) represented 18 percent, while France and Japan each accounted for 8 percent. Other markets made up the remaining 14 percent.
LVMH reported a decline in the relative contribution of Asia (excluding Japan), which fell by two percentage points compared to the prior year, reflecting continued softness in demand across the region. Japan’s contribution also declined by one percentage point. By contrast, the United States, Europe (excluding France), and other markets each increased their share of Group revenue by one percentage point year-over-year, indicating comparatively stronger demand outside of Asia.
LVMH’s Outlook
LVMH characterized the global environment as challenging and reiterated its focus on disciplined cost management, selective retail expansion, and sustained investment in brand desirability. The Group indicated that it will continue to prioritize long-term positioning across its portfolio while remaining cautious in the face of ongoing macroeconomic and geopolitical uncertainty.
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