economy
January 27, 2026
LVMH beats earnings expectations as China recovery mounts
LVMH beat earnings expectations for a second straight quarter amid a China recovery that is starting to show up in luxury companies' balance sheets.
TL;DR
- LVMH reported fourth-quarter revenue of 22.7 billion euros, surpassing LSEG estimates of 22.2 billion euros.
- Organic revenue grew by 1% in the fourth quarter, contributing to a full-year revenue decline of 1%.
- Asia, excluding Japan, showed significant improvement in trends compared to 2024, with a return to growth in the latter half of the year.
- The fashion and leather goods division, including brands like Louis Vuitton and Dior, experienced a 5% organic sales decline for the full year.
- CEO Bernard Arnault cautioned that 2026 might be challenging due to an unpredictable economic climate.
- Other luxury companies like Richemont and Burberry also reported positive sales trends, driven by demand in jewelry and attracting Gen Z consumers in China, respectively.
- Analysts note that while investor sentiment is improving, risks remain, including demanding valuations and uncertainty about the return of aspirational shoppers.
Continue reading the original article