Luxury bellwether LVMH enters 2026 with a sharpened focus on operational discipline following a transitional fiscal year. While the group reported a 5 per cent decline in reported revenue to €80.8 billion for 2025, a move toward organic stability in the second half of the year - highlighted by 1 per cent growth in the fourth quarter - signals a resilient recovery. This normalization follows a ‘post-pandemic super-cycle’ that previously inflated growth, with current performance now underpinned by a diversified portfolio that shields the group from specific regional volatility.
Selective Retailing and Beauty outperform
A primary engine of growth in the current landscape is the Selective Retailing sector, which achieved a 28 per cent growth in recurring profit in 2025. Sephora remains the standout performer, consolidating its status as the world’s leading beauty retailer through aggressive volume gains and margin expansion. This success is mirrored in the Perfumes and Cosmetics division, which saw an 8 per cent profit increase, proving that ‘accessible luxury’ and high-ticket beauty categories remain insulated from broader macroeconomic cooling in Europe and Japan.
Strategic speed and sustainable craftsmanship
LVMH is aggressively leveraging its new 10-year partnership with Formula 1, which debuted in 2025, to capture high-growth demographics. Featuring TAG Heuer and Moët Hennessy, this collaboration serves as a key marketing pillar for the 2026 season. Simultaneously, the group has accelerated its LIFE 360 environmental roadmap, achieving 84 per cent certified cotton and 76 per cent certified wool usage. In an uncertain environment, our ability to inspire dreams through sustainable creativity is our decisive asset, stated Bernard Arnault, Chairman, as the group prepares to propose a €13 dividend per share this April.
LVMH is a global leader in luxury across six business sectors, including Fashion, Beauty, and Watches. With €80.8 billion in 2025 revenue and a workforce of 211,000, the group is focused on maintaining its 22 per cent operating margin through 2026. Historically a family-led pioneer, it continues to scale via flagship ‘House’ experiences in Shanghai, Milan, and Tokyo.
