Against a challenging global economic backdrop, LVMH closed 2025 by leaning into the strength of its scale, brand equity and long-term discipline. While the Group reported a slight year-on-year decline in results, its underlying performance underscored the resilience of its diversified luxury portfolio and its ability to generate cash in uncertain conditions.
Revenue for the year reached €80.8 billion, marking an organic decline of 1 per cent. On a reported basis, sales were down 5 per cent, primarily due to adverse currency movements, as a stronger euro weighed on international revenues. Despite these pressures, LVMH maintained a robust operating margin of 22 per cent, highlighting the durability of its business model.
According to Antoine Fraysse-Soulier, Market Analyst at eToro, the results reflect more than short-term performance. “LVMH’s 2025 performance highlights exemplary cash-flow management and the continued strength of its brands, even in a complex macroeconomic and currency environment,” he said.
Cash Flow Strength and Portfolio Performance
Cash generation stood out as one of the year’s key positives. Operating free cash flow rose 8 per cent to €11.3 billion, allowing the Group to reduce net debt by 26 per cent and reinforcing its financial flexibility.
Within the portfolio, Selective Retailing emerged as the main driver of growth, posting organic growth of 4 per cent. Sephora delivered a particularly strong performance, consolidating its global leadership and continuing to gain market share. Fashion & Leather Goods, meanwhile, saw sales decline by 5 per cent, though profitability remained notably resilient, with operating margins holding at a high 35 per cent.
Creative Renewal and Strategic Expansion Beyond Luxury
Beyond numbers, LVMH continues to double down on its belief that luxury is as much about experience as it is about product. Bernard Arnault reiterated the Group’s ambition to turn purchasing into a cultural and emotional journey, with maisons evolving into destinations in their own right. Recent examples include The Louis in Shanghai, alongside new Tiffany & Co. flagships in Milan and Tokyo, all designed to deepen local relevance and customer connection.
The Group is also in the midst of a significant creative reset. New artistic director appointments, including Jonathan Anderson at Dior, Sarah Burton at Givenchy and Michael Rider at Céline, signal a deliberate push to inject fresh creative energy into key houses. This wave of change is expected to fuel both commercial momentum and cultural visibility.
At the same time, LVMH is expanding its presence beyond traditional luxury categories. Initiatives such as its ten-year partnership with Formula 1 and participation in the Osaka World Expo reflect a broader ambition to extend its vision of luxury into lifestyle, sport and global cultural platforms.
As it moves into 2026, LVMH remains cautious but confident. Strong cash flow, disciplined financial management and a clearly defined strategic direction continue to anchor the Group as it navigates an evolving global landscape.
