Archive · 31 Jan 2026
LVMH's Strong Business Performance Contrasts with Stock Decline
LVMH, a big luxury goods company, had a good year in 2025.
Most of its products did well, especially watches and jewelry, which grew.
However, some areas like fashion and wines and spirits did not do as well.
The company made a lot of money, but its stock price went down.
This happened because investors are now looking for faster growth and new exciting stories, and LVMH's growth was not as fast as before.
The strong euro also made things harder.
So, even though the company is doing well, the stock price is not going up because investors are waiting to see more growth.
LVMH's total revenue fell 1% organically in 2025, with most segments improving in the second half of the year.
Fashion & Leather Goods, LVMH's core profit engine, declined 5% organically, while Watches & Jewelry grew 3%.
Selective Retailing, including Sephora and DFS, grew 7% organically and saw a 28% jump in profit.
LVMH's operating margin was 22%, slightly below 2024's 23.1%, with strong cash flows and healthy margins.
The stock declined double digits for the year due to shifted market expectations and macroeconomic factors like currency fluctuations and a normalized U.S. consumer.
- Who
- LVMH, the world's largest luxury group
- What
- Strong business performance but declining stock value
- When
- 2025
- Where
- Global, with notable impacts in China, the U.S., and Europe
- Why
- Market expectations shifted, focusing on faster growth and new narratives, while LVMH's growth stabilized
- Revenue Change
- Down 1% organically
- Fashion & Leather Goods
- Down 5% organically
- Watches & Jewelry
- Up 3% organically
- Selective Retailing
- Up 7% organically
- Wines & Spirits
- Down 5% organically
- Operating Margin
- 22% (down from 23.1% in 2024)
- Profit from Recurring Operations
- €17.8 billion (down 9%)
- Currency Impact
- FX shaved 3 points off revenue growth and over €1 billion off profit