LVMH shares plunge as results trigger doubts over luxury market’s recovery
LVMH has reported a decline in turnover, dropping from €84.7 billion in 2023 to €80.8 billion in 2025, influenced by unfavorable currency fluctuations, particularly the weaker US dollar, despite a limited organic revenue decline of just 1%. The luxury giant experienced a significant 8% drop in share price following the financial results, raising concerns about the recovery of the luxury market. However, some analysts view this reaction as an overreaction, maintaining that LVMH's recovery is likely to continue into 2026, bolstered by new retail initiatives and rising consumer demand, especially from China. In its Watches and Jewellery division, revenue slightly decreased, with a reported €10.486 billion, reflecting a 1% decline. Profits from recurring operations have also fallen, from €22.8 billion in 2023 to €17.5 billion, while the Watches and Jewellery profit decreased from €2.1 billion to €1.5 billion over the same period. The division includes prestigious brands like Tiffany & Co., Bulgari, and TAG Heuer, and has highlighted strategic developments such as TAG Heuer’s role as the official timekeeper of Formula 1 and significant anniversaries in its product lines.
