LVMH reported a 1% organic revenue decline in 2025, with improved trends in the second half (1% growth in Q3 and Q4). Leather goods division was down 5% for the year and 3% for the quarter, putting pressure on margins. Revenue trajectory slightly improved in Q4 with better margins than expected.

There were no major regional trend changes, with Chinese global buying on par with Q3 and improving from the first half. American demand showed slight sequential deceleration. Watches and jewelry stood out with an 8% increase in the quarter, echoing Richemont’s strong jewelry brand performance.

Maintaining a EUR 620 fair value estimate for LVMH as results aligned with expectations. Recovery in demand may be delayed due to cautious company commentary and mixed macroeconomic data. Long-term drivers for LVMH and luxury remain intact, supported by growing wealth in key purchasing nations like China and the US.

Read more at Morningstar: LVMH Earnings: Broadly in Line With Expectations, Recovery Tepid