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LVMH Results “Solid” Despite Economic Upheavals

Though its sales and profits dropped, luxury giant says its brands retain powerful desirability.

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Signage related to the 2025 Formula 1 race in Madrid bearing the TAG Heuer watch brand, one of several LVMH units participating in promotions at that high-profile circuit’s races. PHOTO: ISTOCKPHOTO

LVMH (Moët Hennessy Louis Vuitton) is widely recognized as the top luxury retailer in the world, thanks to its portfolio of 75 brands (including Fendi, Louis Vuitton, Dior, Moët & Chandon, Sephora, TAG Heuer and Tiffany & Co.) and 5600 stores globally. So, how is that massive, Paris-based enterprise faring in the current era of economic upheaval?

Some major clues as to the answer of that question can be found in the news release detailing the company’s financial results for 2025, which saw it report revenues totaling €80.8 billion (U.S. $96.6 billion), which is down 5% from a year earlier, and profit from recurring operations of €17.8 billion (U.S.$22.1 billion), a drop of 9%

Here’s how Chairman and CEO Bernard Arnault characterized that performance:

“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. This momentum was once again underpinned by the powerful desirability of our brands, which embody creative passion and the pursuit of the utmost quality, and by our ambition of offering our customers extraordinary stores and cultural experiences, as demonstrated by The Louis in Shanghai, our House of Dior stores in a number of cities around the world, and our new Tiffany & Co. locations in Milan and Tokyo.

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“In addition to the promising new creative energy at several of our Maisons, two major initiatives were a source of pride for the group. The first was our presence at the World Expo in Osaka, where our Maisons’ distinctive, beautifully staged displays highlighted French craftsmanship and the art of living. The second, in a different field, was the first year of our 10-year partnership with Formula 1 – an exciting opening into a world that shares our passion for excellence and innovation.”

As for the coming year, Arnault said: “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 once again be a decisive asset underscoring our leadership position in the luxury goods market. We will remain true to our entrepreneurial tradition as a forward-looking family group focused on sustainable creativity in high-quality products, exceptional spaces and the long-term future of our outstanding craftsmanship.”

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