Luxury is back from the brink, but it still needs a proper turnaround in China, writes @andrea_felsted (via @opinion) https://t.co/qhbIdPXTVX ...

Core Viewpoint - LVMH reported mixed full-year earnings, leading to a significant drop in its share price by over 7% in morning trading [1][2] Financial Performance - Organic revenue growth was 1% in Q4, unchanged from the same period last year [1] - Full-year revenue declined by 1% [1] Market Reaction - Shares of LVMH were last seen down 7.7% [2] - Analysts noted that investors had anticipated stronger results, especially in light of positive performances from competitors like Richemont, Burberry, and Cucinelli [2]

LVMH CEO Bernard Arnault started a Tuesday earnings call with some dry humor, telling investors that his company will see the end of winter. The French luxury tycoon, who is worth $197 billion, announced the company's full-year 2025 results during a call with investors."I'm delighted to present to you the figures for 2025, to begin with a good piece of news," he said. "I think we'll make it through the winter." He said that LVMH's results were "solid" in a challenging geopolitical and economic climate, an ...

Group 1: Company Strategy - Tiffany & Co. is shifting its focus from silver jewelry to gold and high jewelry, as stated by LVMH executives [1][2] - The demand for high jewelry has quadrupled over the last four years, while demand for silver jewelry has declined by one-third since LVMH acquired Tiffany in 2021 [2] - This marks a significant change for Tiffany, which has historically specialized in silver jewelry since its inception in 1851 [3] Group 2: Financial Performance - LVMH's watches and jewelry division reported €10.5 billion in sales (approximately $12.6 billion) in 2025, reflecting a 1% decline from the previous year [4] - LVMH's stock price has decreased by about 22% over the past year [4] Group 3: Market Trends - Gold prices have surged to record highs, with spot gold trading around $5,240 per ounce, up about 20% this year and 73% in 2025 [6] - Silver prices have also risen significantly, currently trading around $115 per ounce, with a year-to-date increase of 56% and a 170% rise last year [9] - The gold-to-silver ratio has fallen to a four-year low, indicating that silver now "appears expensive" relative to gold [12]

Core Insights - LVMH's Q4 organic revenue grew by 1% year-on-year, slightly above market expectations; however, total annual revenue declined by 4.6%, in line with forecasts. Currency fluctuations negatively impacted annual revenue by approximately 3% [1] Revenue Breakdown - Fashion and Leather Goods: Q4 organic revenue decreased by 3%, accelerating the decline and slightly exceeding market expectations; annual organic revenue fell by 5%, yet maintained a high operating margin of around 35% [1] - Wines and Spirits: Q4 organic revenue plummeted by 9%, significantly underperforming expectations; annual recurring operating profit dropped by 25% [1] - Perfumes and Cosmetics: Q4 organic revenue unexpectedly declined by 1%, failing to achieve anticipated growth [1] - Watches and Jewelry: Q4 organic revenue increased by 8%, far surpassing analyst expectations; annual organic growth was 3%, serving as a crucial counterbalance to the weakness in other segments [1] - Selective Retailing (Sephora, DFS): Q4 organic revenue rose by 7%, with annual recurring operating profit soaring by 28%, driven by Sephora's global expansion and effective brand selection strategy [1]

Core Insights - The Christian Dior group reported a revenue of €80.8 billion for 2025, demonstrating resilience and innovative momentum despite a challenging global economic and geopolitical environment [1][6][8] - The company experienced a decline in Europe during the second half of the year, while the United States saw growth driven by strong local demand [1][6] - Japan's revenue decreased compared to 2024, which had benefited from increased tourist spending due to a weaker yen [1] - The rest of Asia showed improved trends, returning to growth in the latter half of the year [1] Financial Performance - Organic revenue growth was 1% in the fourth quarter, consistent with the third quarter [2] - Profit from recurring operations for 2025 was €17.7 billion, resulting in an operating margin of 22%, impacted by currency fluctuations [2][8] - The group net profit reached €11.2 billion, with the group share of net profit at €4.5 billion [2] - Operating free cash flow increased by 8% to €11.3 billion [2][8] Business Group Performance - **Wines & Spirits**: Revenue decreased by 5% (organic), with profit from recurring operations down 25% due to weaker demand for cognac and trade tensions affecting key markets [12][9] - **Fashion & Leather Goods**: Revenue declined, but showed improvement in the second half, with a high operating margin of 35% despite a 13% drop in profit from recurring operations [13][9] - **Perfumes & Cosmetics**: Revenue remained stable on an organic basis, with an 8% increase in profit from recurring operations, achieving an operating margin of 8.9% [14][9] - **Watches & Jewelry**: Recorded organic revenue growth of 3%, with profit from recurring operations down 2% [15][9] - **Selective Retailing**: Achieved organic revenue growth of 4% and a 28% increase in profit from recurring operations, with Sephora continuing to grow its market share [17][9] Environmental and Social Impact - The company made progress under its LIFE 360 environmental program, with 41% of materials sourced through recycling processes, an increase of 8% from 2024 [7] - Significant increases in certified raw materials were noted, with cotton certification rising to 84% and wool to 76% [7] - Water withdrawal for production sites was reduced by 19% compared to 2019, with a target of 30% reduction by 2030 [7] - The group supported nearly 1,000 nonprofits and charitable foundations, with over 69,000 employees participating in community involvement [10] Future Outlook - The company remains confident in its strategy for 2026, focusing on brand development, innovation, and quality in products and distribution [18][19]

MILAN — Since the exit of Marco Gobbetti as chief executive officer of Salvatore Ferragamo last March, executive chairman Leonardo Ferragamo has been spearheading the strategy of the Florence-based company with a  transitional chairman advisory committee. On Tuesday, reporting its preliminary 2025 revenues, Ferragamo said the board appointed the company’s vice president Angelica Visconti as a new member, with immediate effect. She is the daughter of the late Fulvia Ferragamo Visconti, who died in 2018, and ...

MILAN – The bond between LVMH Moët Hennessy Louis Vuitton and Loro Piana has become even tighter. On Tuesday, the French luxury group confirmed the partial buyout of the Italian company’s shares held by the Loro Piana family, which occurred in 2025. More from WWD LVMH has raised its stake to 94 percent from 85 percent through the acquisition of an additional 9 percent of shares for 1 billion euros, via a call option. This was exercised in accordance with the terms of the original agreement that brought Lo ...

Luxury conglomerate LVMH reported better-than-expected earnings after the bell on Tuesday and a second quarter of organic revenue growth, as the sector's recovering business in China starts to show up in balance sheets.Organic revenue grew by 1% in the fourth quarter, flat from the same period a year earlier. Over the full year, revenue decline 1%.The company reported fourth-quarter revenue of 22.7 billion euros, beating LSEG estimates of 22.2 billion euros. For the full year, revenue came to 80.8 billion e ...

Core Insights - LVMH Moët Hennessy Louis reported a 5 percent decline in revenues for the fourth quarter, primarily due to weakness in the fashion and leather goods division and poor performance in wines and spirits [1][3] - The company achieved revenues of 22.7 billion euros in the last quarter, reflecting a 1 percent increase at constant exchange rates compared to a 2 percent decline in the previous quarter [1][4] Revenue Breakdown - The fashion and leather goods unit experienced a 3 percent decline in organic revenues, aligning with consensus estimates [3] - Wines and spirits saw a significant 9 percent drop in revenues, while perfumes and cosmetics also declined by 1 percent during the holiday season [3] - The watches and jewelry division reported an 8 percent increase in organic sales, and selective retailing grew by 7 percent [3] Annual Performance - For the full year 2025, LVMH's revenues totaled 80.8 billion euros, down 4.5 percent year-on-year, with growth in the U.S. and Asia-Pacific not offsetting declines in Europe and Japan [4] - Net profit decreased by 13 percent to 10.9 billion euros, and profit from recurring operations fell by 9 percent to 17.8 billion euros, resulting in an operating margin of 22 percent affected by currency fluctuations [4] Strategic Outlook - Despite a challenging geopolitical and macroeconomic environment, LVMH remains confident in its brand development strategy, focusing on innovation, investment, and maintaining high standards of desirability and quality [2][5]