By Mauro Orru


LVMH Moet Hennessy Louis Vuitton wrapped up last year's final quarter with sluggish sales growth, a sign that shoppers weren't splurging on its collections of high-end garments and handbags in the runup to the holiday season.

The French luxury-goods giant posted fourth-quarter sales of 22.72 billion euros ($27 billion), up 1% organically. Analysts had forecast 22.59 billion euros in sales and an organic decline of 0.3%, according to Visible Alpha.

LVMH's fashion and leather goods division, which houses brands like Louis Vuitton and Dior, contributed 10.16 billion euros in sales, down 3% organically. Sales at perfumes and cosmetics declined 1%, while the wines and spirits division reported a 9% contraction in sales. Selective retailing, the unit behind Sephora, fared better, with a 7% increase in sales, while watches and jewelry logged 8% growth.

For LVMH and the wider luxury-goods sector, the final quarter represents a key test of customers' willingness to indulge on nonessential items in the runup to Black Friday, Thanksgiving and Christmas.

Earlier this month, British trench-coat maker Burberry Group, Italian luxury-fashion house Brunello Cucinelli and Cartier owner Compagnie Financiere Richemont all reported higher sales for the quarter, raising the bar for industry bellwether LVMH.

Weak sales growth shows that LVMH's collections aren't appealing to clients and that the group is still contending with a slowdown in spending for luxury goods that has plagued the industry for years.

Demand weakened considerably after a postpandemic boom, especially among less affluent shoppers. The downturn has been particularly acute in China--a key market for LVMH and its rivals--as shoppers there have been holding back spending.

Last year brought a dose of uncertainty for LVMH and the sector as it took several months for the European Union to reach a trade deal with the U.S. after President Trump announced his Liberation Day tariffs.

Luxury goods are particularly sensitive to trans-Atlantic trade frictions and the specter of tariffs has never fully disappeared despite that trade deal. Last week, LVMH and other luxury stocks slumped after Trump threatened 10% levies on various European countries he said were opposed to a U.S. takeover of Greenland. He subsequently called off those tariffs.

LVMH closed 2025 with 80.81 billion euros in annual sales, down 1% organically. Analysts had forecast 80.65 billion euros in 2025 sales with a 1.8% organic decline, according to Visible Alpha.

The group said revenue declined in Europe in the second half of the year, while the U.S. benefited from solid demand. Sales in Japan were down from 2024, but the company said it had seen a noticeable improvement in trends in the rest of Asia, citing a return to growth in the second half of the year.

In an earnings call, executives expressed confidence for 2026 despite an uncertain geopolitical and macroeconomic environment, saying the positive trends they started to see in the second half were still there.

Net profit slid 13% on year to 10.88 billion euros, while profit from recurring operations fell 9% to nearly 17.76 billion euros. Analysts had forecast net profit of 10.55 billion euros and profit from recurring operations of 17.15 billion euros, according to Visible Alpha.

The group said it would propose a dividend of 13 euros a share at its shareholders' meeting on April 23, the same as the previous year.


Write to Mauro Orru at mauro.orru@wsj.com


(END) Dow Jones Newswires

01-27-26 1313ET