LVMH navigates challenging 2025 as fashion shows second half recovery

LVMH reported revenue of €80.8 billion in 2025, representing a 5% decline year-on-year, as the group navigated a challenging environment marked by geopolitical uncertainty and uneven regional demand.

Despite the softer full-year performance, trends improved in the second half, with organic revenue growth of 1%, reflecting stabilisation across all business groups.

The Fashion & Leather Goods division recorded a 8% decline in revenue for the year, or a 5% decrease organically, although performance improved in the second half.

The year marked a period of significant creative leadership transitions across several fashion houses. Christian Dior entered a new chapter with the appointment of Jonathan Anderson, now overseeing Haute Couture, Men’s and Women’s collections.

First runway collections from newly appointed creative leaders, including Michael Rider at Celine, Jack McCollough and Lazaro Hernandez at Loewe, and Sarah Burton at Givenchy, were also met with an "excellent response".

Fendi further signalled a strategic creative shift with the appointment of Maria Grazia Chiuri as Chief Creative Officer.

Elsewhere, the Perfumes & Cosmetics division delivered flat organic revenue growth in 2025, with reported revenue declining 3%.

In fragrances, Parfums Christian Dior benefited from the launches of Miss Dior Essence and Dior Homme, while innovations in makeup, including the Forever and Dior Addict lines, supported sales.

Guerlain and Parfums Givenchy were also buoyed by recent product launches.

Selective Retailing recorded organic revenue growth of 4% in 2025, with reported revenue flat year-on-year, driven by a “remarkable” performance from Sephora.

The global beauty retailer continued to deliver growth in both revenue and profit, enriched its brand portfolio - with Rhode achieving a "record-breaking" launch - and invested further in its omnichannel strategy.

From a regional perspective, Europe experienced a slowdown in the second half, while the US delivered growth supported by resilient domestic demand.

Japan declined compared with 2024’s "strong performance", while the rest of Asia showed improving trends, returning to growth in the second half of the year.

Looking ahead, Bernard Arnault, Chairman and CEO of LVMH, 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."