Paris, January 28, 2026, 11:00 CET — Regular session
LVMH shares dropped roughly 7% in early trading Wednesday, falling about 42 euros to near 547 euros on the Paris market. The stock had closed at approximately 589 euros the day before. 1
The decline came after the group’s annual update, which struck a cautious note on the early signs of demand recovery, traders said. The drop also hit other European luxury stocks like Kering, Moncler, and Hermès, with investors viewing LVMH as the sector’s bellwether. Finance chief Cécile Cabanis stressed the importance of volume growth to boost margins. “We need growth … and continuing to manage our costs,” she said. 2
The company’s fourth-quarter sales topped expectations, but that wasn’t enough to ease concerns over profitability. Like-for-like sales, which exclude currency fluctuations and acquisition impacts, rose 1% to 22.7 billion euros. Growth in China and an 8% surge in watches and jewellery helped, though fashion and leather goods fell 3%. LVMH cited currency shifts, U.S. tariffs on alcohol exports, and record-high gold prices as factors squeezing margins. Bernard Arnault warned analysts, “I think there is reason to be a little cautious.” 3
LVMH posted 2025 revenue of 80.8 billion euros, with profit from recurring operations hitting 17.8 billion euros, marking a 22% operating margin. Operating free cash flow climbed 8% to 11.3 billion euros. The luxury giant highlighted ongoing weakness in its wine and spirits segment but saw growth continue at Sephora. It also confirmed a January deal to sell DFS’s Greater China business to China Tourism Group Duty Free. 4
Investors are closely monitoring whether the group can spark demand beyond its wealthiest buyers after years of steep luxury price hikes. “There’s a greater hope that luxury spend is going to be a little bit better,” said Paul Moroz, portfolio manager at Mawer Investment Management. But he cautioned, “there is a risk some consumers are tapped out.” 5
The risk for the stock lies in better China trends failing to spark broad volume growth, which could keep margins squeezed by currency shifts, tariffs, and product mix. A sharper decline in wine and spirits would weigh more heavily, even though that segment isn’t the main profit driver.
Traders are watching to see if the early drop in LVMH steadies or triggers a wider slide, particularly as the luxury sector continues to pin hopes on a Chinese rebound.
Investors aren’t just watching company earnings—they’re also keyed into currency moves and trade news. A softer dollar could dent U.S. tourist spending in Europe, while any uptick in tariff chatter tends to pressure margin forecasts for goods sourced worldwide.
LVMH announced it will propose a 13-euro dividend at its shareholder meeting on April 23. The final payment of 7.50 euros per share is scheduled for April 30, marking the next key date for investors. 6
