LVMH stays on top of luxury, but growth slows as demand shifts

If you splurged on a Louis Vuitton bag or a Dior fragrance this year, you weren’t alone. LVMH Moët Hennessy Louis Vuitton, the world’s biggest luxury group, pulled in €80.8 billion in revenue for 2025, proving people are still spending big on luxury even as the global economy wobbles. But the picture isn’t all sparkling champagne.

Revenue slipped 5% from 2024, with Europe cooling in the second half and Japan down after a tourist-fueled 2024 boost. The U.S. remained strong thanks to steady local demand, and the rest of Asia bounced back in the second half.

Organic growth for the year was just 1% in the fourth quarter, matching the third quarter. Profit from recurring operations hit €17.8 billion, giving LVMH a 22% operating margin, while net profit reached €10.9 billion. Operating free cash flow rose 8% to €11.3 billion.

Fashion & Leather Goods stayed resilient with local customers, maintaining a high 35% margin. Louis Vuitton wowed visitors with The Louis in Shanghai, La Beauté Louis Vuitton, and its first Formula 1 partnership. Christian Dior opened new stores in New York, Los Angeles, and Beijing, while jewelry lines from Victoire de Castellane and Tiffany & Co. drew strong sales.

Perfumes & Cosmetics stayed steady with hits like Dior Homme, Miss Dior Essence, and Guerlain’s latest fragrances. Watches & Jewelry grew 3% organically, with Tiffany & Co. and Bvlgari breaking records on iconic collections and renovated stores. Sephora led Selective Retailing with 4% organic growth, opening around 100 new stores worldwide.

Beyond profits, LVMH boosted sustainability under LIFE 360, recycling 41% of materials, certifying nearly all diamonds and grapes, cutting water use 19% since 2019, and regenerating 4.3 million hectares of habitats. The company employed over 211,000 people globally, paid €5.5 billion in corporate taxes, and supported nearly 1,000 nonprofits.

Despite economic uncertainty, LVMH remains confident in 2026, pushing creativity, luxury desirability, and innovation. Shareholders will see a €13 per share dividend, with the second installment of €7.50 paid on April 30, 2026. Luxury may be indulgent, but LVMH’s reach makes it a serious economic and cultural force shaping what we buy and admire.