Paris (France) (AFP) – The world’s leading luxury group, LVMH, saw net profit slide 13 percent in 2025 to 10.9 billion euros ($13.1 billion) as an exceptional tax on large French companies weighed on its bottom line. But sales at the company, best known for Louis Vuitton handbags, Dior fashion, Moet & Chandon champagne, and Tiffany jewellery, also dropped by five percent to 80.8 billion euros as tariffs and geopolitical uncertainty hit consumer sentiment.
The wines and spirits division took the hardest hit with a nine percent drop in sales. However, the top fashion and leather goods division, which accounts for nearly half of overall sales, also saw an eight percent drop in sales. LVMH said it “showed good resilience and maintained its innovative momentum despite a disrupted geopolitical and economic environment” last year.
“Despite a geopolitical and macroeconomic environment that remains uncertain, the Group remains confident” for 2026, it added in its earnings statement. Revenue also dropped by 5.1 percent in the final quarter of 2025 from the same period in 2024. LVMH said sales in the United States grew in the second half of 2025 thanks to solid demand.
© 2024 AFP
