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LVMH Sales Rise: Luxury Rebound Signals Hope
28 Jan
Summary
- LVMH sales increased 1% in late 2025, surpassing expectations.
- Full-year 2025 profits declined 9% despite sales improvements.
- The company is increasing investments in China for sales revival.
LVMH has offered a glimmer of hope for the luxury goods industry by reporting an increase in sales for the final three months of 2025. The conglomerate, which owns prestigious brands like Louis Vuitton and Dior, saw its sales climb by 1%, reaching £19.7 billion and surpassing forecasts of a slight decline.
However, the luxury giant's overall performance for 2025 showed a 1% drop in sales, leading to a 9% decrease in profits, which amounted to £15.5 billion. The critical fashion and leather goods division, a significant contributor to the business, experienced a 3% sales reduction.
In an effort to reinvigorate its sales figures, LVMH, led by French billionaire Bernard Arnault, has intensified its focus on the Chinese market. Recent strategic moves include the opening of a distinctive ship-shaped Louis Vuitton store in Shanghai and a new Dior flagship store in Beijing.
The company's chief financial officer expressed optimism for a gradual improvement in the group's performance throughout 2026. Shares of LVMH, traded in Paris, saw a modest increase of 0.2% recently.
