LVMH has reported a drop in annual revenue in 2025, citing currency movements and softer demand in several markets amid what it described as a disrupted geopolitical and economic backdrop.
The French luxury retailer posted revenue of €80.80bn ($96.48bn) for the year, down 5%, while profit from recurring operations dropped 9% to €17.75bn.
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Organic revenue declined 1% across the full year, with fourth-quarter organic growth of 1%, matching the pace recorded in the previous quarter.
Net profit attributable to the group slid 13% to €10.87bn.
Operating free cash flow, however, increased 8% to €11.33bn, and net financial debt fell 26% to €6.85bn by year-end.
LVMH chairman and CEO Bernard Arnault said: “Once again in 2025, LVMH demonstrated its solidity and effective strategy upheld by its highly engaged teams. The group was buoyed by the loyalty and growing demand shown by our local customers.”
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By GlobalDataRegional performance was mixed. Europe saw a downturn in the second half while the US expanded on the back of domestic demand.
Japan retreated from the previous year, when spending had been supported by a weaker yen, and the rest of Asia moved back into growth during the latter part of the year.
Results also varied by division. Wines and spirits recorded a 5% organic revenue fall, with profit from recurring operations down 25%, reflecting weaker cognac demand and the effect of trade tensions between China and the US.
Fashion and leather goods reported a 5% organic decline in revenue and a 13% drop in operating profit, while keeping an operating margin of 35%.
Perfumes and cosmetics delivered flat organic sales and an 8% rise in operating profit.
Watches and jewellery achieved 3% organic growth, and selective retailing posted a 4% organic increase in revenue alongside a 28% jump in operating profit, led by Sephora.
At the end of 2025, LVMH employed more than 211,000 people worldwide, including over 40,000 in France.
Corporate tax payments totalled €5.5bn for the year, with around half paid in France.
Within selective retailing, DFS signed an agreement this month with China Tourism Group Duty Free to acquire its operations in Greater China, including Gallerias in Hong Kong and Macao.
Despite ongoing geopolitical and macroeconomic uncertainty, the group said it remained confident for 2026 and reiterated its focus on brand development, innovation and investment.
