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, and the company has “managed to get through this period.”
“2026 won’t be simple either, but one thing at a time,” he added. Arnault has been the luxury giant’s CEO since 1989.
The group posted revenue of €80.8 billion, or about $96.9 billion, in 2025, a 5% decline from 2024. Of this, its wine and spirits division took the largest hit, with sales down 9% from 2024.
LVMH has seen its revenue growth slow down in recent years. In 2020, it was hit hard by the COVID pandemic, seeing its annual revenue drop 17% compared to 2019. Business picked back up in 2021, where it saw a 44% revenue increase compared to 2020.
However, the luxury slump that followed has since taken a toll on the business, as aspirational customers cut down on luxury purchases, squeezed by inflation after the pandemic. Luxury customers in China, one of LVMH’s most important markets, were hit by a real-estate-linked economic crisis and reined in their spending.
LVMH’s sales went into the red in 2024, when it reported a 2% revenue dip compared to 2023.
And last year, it faced a new challenge: President Donald Trump’s tariffs. Company executives said in May last year that prices for some of its premium goods could increase 2 to 3% to offset the tariffs.
It’s not just LVMH that is suffering from the luxury slump. The upscale US department store company, Saks Global, filed for Chapter 11 bankruptcy on January 13, owing millions to luxury companies Kering, Chanel, and Capri Holdings.
Representatives for LVMH did not respond to a request for comment from Business Insider.
