LVMH Shares Plunge, Pull Luxury Sector Down Following Disappointing Results

LVMH’s results are down on the stock market. The shares of the luxury giant fell by more than 8% on Wednesday, after the company led by Bernard Arnault announced on Tuesday a 13.3% drop in profit in 2025 and a decline of almost 5% in turnover, weighed down by the strength of the euro.

At the analysts’ conference following the publication of the conglomerate’s accounts, Arnault was cautious about the expected evolution for this year: “The 2026 financial year will not be easy either, but we are taking it step by step”.

The company ended its 2025 financial year with a turnover of €80.8 billion, down 1% in organic terms and 5% in reported figures. In a complex economic and geopolitical environment, particularly for luxury companies, the group kept its finger on the pulse of the business and avoided further deterioration in the final stretch of the year.

LVMH posted organic growth of 1% in the fourth quarter of the previous year

LVMH pointed to some stabilization at the end of the year, with the company posting a slightly upbeat 1% organic growth in the fourth quarter of 2025, in line with the third quarter. The group also indicated that Asia, excluding Japan, returned to growth in the second half of the year.

The company estimated that exchange rate fluctuations had an overall negative impact of €1,065 million on the result of recurring operations, compared with 2024. After the opening of the European markets, the conglomerate’s shares lost 8.19% of their value, although as the session progressed they managed to contain the punishment and slowed the fall to 7%.

LVMH yesterday raised its stake to 94% from 85% in Loro Piana, after acquiring an additional 9% for €1 billion through a call option, exercised under the terms of the agreement sealed in 2013. With this move, the Italian brand is now valued at €11 billion.