"Regional performance remained uneven. Asia excluding Japan saw organic sales fall 4%, underperforming the group average as consumer spending in China remained subdued amid ongoing economic headwinds. Despite this, LVMH continued to invest heavily in the region, including the opening of a ship-shaped Louis Vuitton flagship in Shanghai in June 2025 and a new Dior store in Beijing in December, both of which have begun to gain traction."
"Japan was the weakest-performing market, with organic revenue down 12%, reflecting tough year-on-year comparisons and volatility in the yen. By contrast, the US held up relatively well, with flat organic growth driven by resilient spending from ultra-high-net-worth consumers. Europe's organic sales fell by just 1%, but Iles noted that momentum weakened as the year progressed, partly due to reduced US tourism and softer consumer confidence."
LVMH reported a 4.6% decline in full-year revenue to €80.8bn, with fourth-quarter sales down 5.1%, marking a worsening versus the prior quarter. Investor concerns drove the group's share price down around 7% in early trading. The company signalled that 2026 will be challenging and indicated plans for tighter cost and expense controls. Regional performance was mixed: Asia excluding Japan fell 4% amid subdued Chinese spending despite significant investment in flagship stores, Japan fell 12% amid tough comparisons and yen volatility, the US was flat driven by ultra-high-net-worth spending, and Europe slipped 1% as momentum waned. Fashion and Leather Goods revenue fell 8%, though declines eased and creative collaborations helped restore cultural momentum.
Read at Business Matters
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