Luxury conglomerate LVMH reported better-than-expected earnings alongside a second consecutive quarter of organic revenue growth.
The company reported revenue of €22.7 billion (US$27.3 billion) for the fourth quarter, surpassing LSEG's predictions of €22.2 billion.
This was spurred on by organic revenue growth of 1%.
“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,” LVMH CEO and chairman Bernard Arnault said.
Full-year revenue, however, fell by 1% to €80.8 billion for 2025.
While revenue declined for the full year in Fashion & Leather goods, there was improvement in the second half of the year, which was boosted by local customers.
Fashion brands owned by the conglomerate, like Louis Vuitton, Dior and Fendi, saw organic sales drop by 5% over the full year, a larger decline than the 1% decrease it logged a year earlier.
Wine and Spirits revenues also declined 5%, while perfumes and cosmetics revenue rose 8%, and selective retailing profit grew 2%.
Following its turnaround to organic growth in the third quarter, the company’s shares surged 12%, as investors became more optimistic about the luxury market, which had been declining over the past two years.
Barclays analyst Carole Madjo said 2026 should continue to deliver recovery for the luxury space, with about 5-6% growth across the sector at constant currencies.
Net profit attributable to the Group was €10.9 billion.
Free cash flow from operations totalled €11.3 billion, up 8%.
At the time of writing LVMH (EPA: MC) stocks were up 0.22% to €589.30. The company’s market cap is €292.29 billion.
