The stock market remains unmoved by LVMH. Shares of the French luxury giant fell 7% following the announcement of its financial results. The decline reflects falling margins and the group’s cautious statements. Meanwhile, LVMH has invested €1 billion to strengthen its control of Loro Piana. Jewelry brands (Tiffany and Bulgari) outperform leather goods, and China appears to have reached the end of its downward trajectory.
The stock market is unimpressed by LVMH
Investors were dissatisfied with both LVMH’s figures and its messaging. The luxury giant closed 2025 with a revenue of €80.8 billion, down 5% compared to 2024 (a decrease of €3.88 billion). Group operating profit fell 9%, to €17.8 billion. In the fourth quarter of 2025, revenue rose 1%, in line with the third quarter, reaching €22.7 billion, while sales in the Fashion & Leather Goods division declined 3%.
Barclays analyst Carole Madjo described this result as “likely below expectations”, according to the Financial Times. Speaking to the same publication, LVMH CFO Cécile Cabanis said that the group’s “creative renewal” and other initiatives lead her to believe that “there should be a gradual improvement” in 2026. LVMH chairman Bernard Arnault emphasized Dior’s recovery, citing strong demand for the first collections by new creative director Anderson, which arrived in stores at the beginning of the year. “One should never be excessively optimistic, but overall, it’s a very promising start”, Arnault said.
Watches and Jewelry Are Growing
The Watches & Jewelry division, however, is moving at a different pace, with revenue up 8% in the fourth quarter. “Tiffany has a real chance of becoming the world’s leading jewelry brand”, Arnault said (source: WWD). Bulgari also delivered particularly strong results in the fourth quarter, according to LVMH. A geographic breakdown of the data shows an increase in sales in China during the final three months of 2025.
Arnault’s Words
“I am optimistic in the medium term, but in the short term it’s difficult to make serious forecasts”, Arnault said, citing the unpredictability of geopolitical developments. Confidence in the future is reinforced by the fact that the Arnault family holding company will soon exceed the 50% ownership threshold of the group, as highlighted by the French billionaire himself. In the meantime, Arnault has invested €1 billion to purchase 9% of Loro Piana shares from the heirs of the brand’s founding family. LVMH’s stake in the Italian brand has thus increased from 85% to 94%.
Loro Piana is the third-largest fashion brand within the group, behind Louis Vuitton and Dior. Market sources estimate annual revenue of around €2.5 billion, and Arnault said that Loro Piana’s main challenge has been to restrain growth. “We don’t want to move too fast, because maintaining product quality is essential, so when things start accelerating too much, we deliberately slow down”, he said. He then added: “When we acquired the company, I believe I paid around €2 billion. Today, it is worth around €10 billion”, WWD reports.
Photo from Louis Vuitton
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