LVMH, the world's largest luxury goods company, reported a decline in annual revenue for 2025. The company's shares are down following the report. Revenue fell 5% to €80.8 billion, with organic revenue down 1%. This downturn reflects the challenging economic and geopolitical climate that continues to pressure the luxury sector, impacting consumer spending.

The slowdown was most evident in Europe, while the US showed signs of recovery. Japan's performance decreased due to reduced tourist spending. The Fashion and Leather Goods division, LVMH's largest, saw an 8% revenue drop. However, the company noted resilience in local demand. Despite the headwinds, operating free cash flow rose 8% to €11.3 billion.

Fourth-quarter results showed some stabilization, with organic revenue growth of 1%. Bernard Arnault, Chairman and CEO, emphasized the company's "solidity" and continued investment in brand desirability. Looking ahead to 2026, LVMH aims to reinforce its leadership in the global luxury market, despite ongoing uncertainty in the current environment.