LVMH Sales Beat Expectations Amid Luxury Market Recovery

Sales at LVMH, the luxury conglomerate behind brands such as Louis Vuitton and Dior, exceeded expectations in the final quarter of 2025. The company reported revenues of €22.7 billion, reflecting a 1 per cent increase compared to forecasts of a decline of 0.3 per cent. This marks a significant sign of resilience within the global luxury market.

Despite a downturn in its core fashion and leather goods division, where revenue fell 3 per cent on an organic basis to €10.2 billion, LVMH’s overall performance has shown improvement. This downturn was anticipated and aligns with the ongoing challenges faced by the luxury sector.

In the wine and spirits division, revenue saw a decrease of 9 per cent year-on-year to €1.4 billion. LVMH noted that while champagne and wine sales remained stable, demand for cognac has weakened. The company has signalled a shift, as its watches and jewellery division experienced an 8 per cent revenue increase, reflecting industry trends similar to those reported by competitors.

The results provide a cautiously optimistic outlook for luxury brands in 2026, after a tumultuous period characterised by reduced consumer spending, particularly among affluent demographics. A prolonged downturn in consumer confidence in China, the world’s largest luxury market, has further complicated matters.

In a recent statement, Bernard Arnault, the French billionaire and founder of LVMH, highlighted the importance of maintaining operational vigilance amidst an uncertain geopolitical and macroeconomic landscape. He noted a notable improvement in market conditions in Asia during the second half of 2025, as the region returned to growth.

The luxury sector continues to adapt to changing market dynamics and consumer preferences, with a notable resurgence in demand from younger shoppers in key markets. LVMH’s commitment to innovation, cost management, and social responsibility remains pivotal in reinforcing its leadership within the industry.