The Tamesis
“First of all, I think we will get through this winter, which is good news,” Bernard Arnault, chairman and CEO of LVMH, the world’s largest luxury goods group, joked on Tuesday night in the auditorium of the company’s headquarters at 22 Avenue Montaigne. “In a rather difficult environment with disruptions and instability, both economically and geopolitically, the group’s earnings have remained solid. However, we have managed to get through this period. 2026 will not be easy, but it will happen one thing at a time.”
LVMH reported that the group’s annual turnover in 2025 was 80.8 billion euros, down 1% from 84.7 billion euros in 2024. Sales in the fashion and leather goods sector fell 5% to 37.8 billion euros in 2025.
After two years of turmoil, earnings from LVMH Moët Hennessy Louis Vuitton on Tuesday confirmed that a recovery is underway. Following a 1% increase in the third quarter, sales in the fourth quarter also increased organically by 1% to approximately 22.7 billion euros. By region, the United States increased by 3%, Asia increased by 1%, Europe decreased by 2%, and Japan decreased by 5%.
In the fourth quarter, the fashion and leather goods segment fell 3% organically to 10.2 billion euros, in line with consensus expectations. That marked a slowdown from the third quarter, when fashion sales fell 2%, and comes on a tighter basis for comparison due to growth after last year’s U.S. election.
LVMH, typically a bellwether in the sector, has seen its recovery mirror that of other fashion companies, although some have posted stronger gains. Earlier this month, Richemont Group announced that its third-quarter sales increased by 11% year-on-year. Brunello Cucinelli reported fourth-quarter revenue growth of 11.9% year-on-year to 388.6 million euros. Kering Group will announce its results on February 11th, and Hermès will announce its results on February 12th.
Sales of fragrances and cosmetics fell 1% in the quarter, while sales of watches and jewelry increased 8%. Select retail grew 7%. Wine and spirits fell 9%.
Analysts pointed to 2025 profits beating consensus estimates. “LVMH appears to have made the most of the difficult market conditions to get the company back on track,” Bernstein luxury goods analyst Luca Solca wrote.
Arnault reviewed the fashion house, starting with Dior, whose new creative director Jonathan Anderson showed his first haute couture collection for the brand on Monday, with the first products arriving in stores on January 2. “This week’s event is the Dior haute couture show,” Arnault said with a smile.
“Everyone was wondering how it was going to go, with a fantastic new designer who had never done fashion before. Well, it was absolutely fantastic. Some of the audience members were even in tears, so moved by the quality, creativity and craftsmanship of the clothes,” he said. He praised former creative director John Galliano for his surprise appearance at the show. “Even John Galliano was particularly moved and delighted to see such a successor. It is a great success. Dior is benefiting from this creative renewal; its products were in great demand at the beginning of the year, so it is off to a good start.”
Speaking of Louis Vuitton, he praised “a great show last week, with clothes that were particularly wearable, which is always a plus. They are really clothes you want to buy, as well as special travel cases. I won’t give prices, especially since most of them have already been sold.”
Rumors about a hotel opening at the Louis Vuitton Champs Elysées flagship store have long been circulating. But on Tuesday, Arnault dismissed further diversification by Louis Vuitton: “This is not a brand that we particularly want to diversify. We already have a lot of products, a lot of collections. We have two designers. Unlike Dior, Vuitton is not a fashion house but a leather goods and luggage manufacturer; that’s the point. Just because Dior has a hotel room on Avenue Montaigne where it can host VIPs, doesn’t mean Louis Vuitton will open a hotel.”
