Story Highlight
– LVMH’s revenue decline limited to 1% in 2025.
– Total turnover fell to €80.8 billion from €84.7 billion.
– Shares dropped 8%, raising industry recovery concerns.
– Watches and Jewellery revenue down 1% to €10.486 billion.
– Profits from operations fell to €17.5 billion from €22.8 billion.
Full Story
Strong performance in the latter part of 2025 enabled luxury conglomerate LVMH to mitigate its organic revenue drop to just 1% for the year. However, adverse fluctuations in currency exchange rates, notably the depreciation of the US dollar, contributed to a total revenue decline of 5%, decreasing from €84.7 billion to €80.8 billion.
The group’s peak revenue occurred in 2023 when it reached €86.1 billion.
Today, LVMH’s shares experienced an 8% decrease, raising concerns about the luxury sector’s resurgence. Despite this, Christopher Rossbach, a portfolio manager at J. Stern & Co., which holds shares in LVMH, described the market reaction as exaggerated in an interview with Reuters.
Rossbach expressed optimism about the company’s prospects, stating, “We remain confident that LVMH’s recovery will continue through 2026, supported by creative renewals, new retail initiatives and increasing consumer demand, particularly from China.”
The Watches and Jewellery segment reported a 3% increase in revenue when adjusted for constant currency, translating to a 1% drop in reported figures, amounting to €10.486 billion. This division achieved its highest revenue in 2023, with sales reaching €10.9 billion.
LVMH expanded its Watches and Jewellery division in January 2021 with the acquisition of Tiffany & Co.
Meanwhile, the group’s recurring operational profits fell from €22.8 billion in 2023 to €17.5 billion. In the Watches and Jewellery division, profits decreased from €2.1 billion to €1.5 billion over the same period.
Within the Watches and Jewellery sector, LVMH encompasses prestigious brands such as Tiffany & Co., Bulgari, Chaumet, Fred, and Repossi, along with watchmakers TAG Heuer, Zenith, Hublot, and the clockmaker L’Epée.
The financial report for the group does not provide detailed performance figures by brand. Instead, it highlights strategic achievements, including TAG Heuer’s inaugural full year serving as the official timekeeper for Formula 1, special 20th anniversary editions of Hublot’s Big Bang collection, and celebrations for Zenith’s 160th anniversary that featured the award-winning G.F.J. Chronometer.
