LVMH

MC

FR0000121014

Apparel & Accessories

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LVMH : 2025 Consolidated financial statements

Published on 02/12/2026 at 08:48 am EST

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LVMH

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CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2025

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED COMPANIES 66

COMPANIES NOT INCLUDED IN THE SCOPE OF CONSOLIDATION 74

STATUTORY AUDITORS' REPORT ON

THE CONSOLIDATED FINANCIAL STATEMENTS 75

As table totals are based on unrounded figures, there may be discrepancies between these totals and the sum of their rounded component figures.

This document is a free translation into English of the original French "Comptes consolidés - 31 décembre 2025", hereafter referred to as the "Consolidated financial statements". It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

‌Consolidated income statement

CONSOLIDATED INCOME STATEMENT

(EUR millions, except /or earnings per share) Revenue Cost of sales	Notes 24-25	2025 80,807 (27,279)	2024 2023 84,683 86,153 (27,918) (26,876)
Gross margin		53,528	56,765 59,277
Marketing and selling expenses		(29,914)	(31,002) (30,768)
General and administrative expenses		(5,934)	(6,220) (5,714)
Income/(Loss) from joint ventures and associates	8	75	28 7
Profit from recurring operations	24-25	17,755	19,571 22,802
Other operating income and expenses	26	(656)	(664) (242)
Operating profit		17,099	18,907 22,560
Cost of net financial debt		(348)	(442) (367)
Interest on lease liabilities		(553)	(510) (393)
Other financial income and expenses		500	160 (175)
Net financial income/(expense)	27	(401)	(792) (935)
Income taxes	28	(5,476)	(5,157) (5,673)
Net profit before minority interests		11,222	12,958 15,952
Minority interests	18	(344)	(408) (778)
Net profit, Group share		10,878	12,550 15,174
Basic Group share of net earnings per share (EUR)	29	21.86	25.13 30.34
Number of shares on which the calculation is based		497,650,238	499,412,515 500,056,586
Diluted Group share of net earnings per share (EUR)	29	21.85	25.12 30.33
Number of shares on which the calculation is based		497,976,118	499,681,046 500,304,316

‌Consolidated statement of comprehensive gains and losses

CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES

(EUR millions)	Notes	2025	2024 2023
Net profit before minority interests		11,222	12,958 15,952
Translation adjustments		(3,489)	1,470 (1,091)
Amounts transferred to income statement		6	(25) (21)
Tax impact		-	- -
	16.5, 18	(3,483)	1,445 (1,112)
Change in value of hedges of future foreign currency cash flows		789	11 477
Amounts transferred to income statement		(298)	(230) (523)
Tax impact		(120)	50 13
		371	(169) (33)
Change in value of the ineffective portion of hedging
instruments (including cost of hedging)		(62)	(357) (237)
Amounts transferred to income statement		194	253 362
Tax impact		(32)	26 (29)
		101	(78) 96
Gains and losses recognized in equity,
transferable to income statement		(3,011)	1,198 (1,049)
Change in value of vineyard land	6	21	23 53
Amounts transferred to consolidated reserves		-	- -
Tax impact		(7)	(2) (11)
		14	21 41
Employee benefit obligations: Change in value
resulting from actuarial gains and losses		27	73 30
Tax impact		(6)	(22) (7)
		21	51 23
Change in value of non-current available for sale financial assets	9	44	- -
Tax impact		(1)	- -
		43	- -
Gains and losses recognized in equity,
not transferable to income statement		77	72 64
Total gains and losses recognized in equity		(2,934)	1,270 (985)
Comprehensive income		8,288	14,228 14,967
Minority interests		(211)	(483) (749)
Comprehensive income, Group share		8,077	13,745 14,218

‌Consolidated balance sheet

CONSOLIDATED BALANCE SHEET

Assets (EUR millions)	Notes	2025	2024 2023
Brands and other intangible assets	3	23,129	26,280 25,589
Goodwill	4	18,315	20,307 24,022
Property, plant and equipment	6	29,728	29,886 27,331
Right-of-use assets	7	14,860	16,620 15,679
Investments in joint ventures and associates	8	1,214	1,343 991
Non-current available for sale financial assets	9	1,891	1,632 1,363
Other non-current assets	10	983	1,106 1,017
Deferred tax		3,738	4,545 3,992
Non-current assets		93,858	101,719 99,984
Inventories and work in progress	11	22,659	23,669 22,952
Trade accounts receivable	12	4,332	4,730 4,728
Income taxes		758	986 533
Other current assets	13	8,840	8,455 7,723
Assets held for sale	2	2,796	- -
Cash and cash equivalents	15	8,794	9,631 7,774
Current assets		48,179	47,471 43,710
Total assets		142,037	149,190 143,694

Liabilities and equity (EUR millions) Equity, Group share Minority interests	Notes 16 18	2025 67,472 1,477	2024 2023 67,517 61,017 1,770 1,684
Equity		68,949	69,287 62,701
Long-term borrowings	19	12,418	12,091 11,227
Non-current lease liabilities	7	13,384	14,860 13,810
Non-current provisions and other liabilities	20	3,546	3,856 3,880
Deferred tax		6,993	7,344 7,012
Purchase commitments for minority interests' shares	21	6,331	8,056 11,919
Non-current liabilities		42,672	46,207 47,848
Short-term borrowings	19	7,925	10,851 10,680
Current lease liabilities	7	2,634	2,972 2,728
Trade accounts payable	22	8,223	8,630 9,049
Income taxes		828	1,231 1,148
Current provisions and other liabilities	22	9,190	10,012 9,540
Liabilities held for sale	2	1,616	- -
Current liabilities		30,416	33,696 33,145
Total liabilities and equity		142,037	149,190 143,694

‌CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Consolidated statement of changes in equity

(EUR millions) Number

Share Treasury

Cumulative

Revaluation reserves Net profit

Total equity

of shares capital

premium account

translation adjustment

Available

Hedges

Vineyard Employee

and other reserves

Group

Minority

Total

for sale financial assets

of future foreign currency cash flows and cost of hedging

land

benefit commitments

interests

Notes	16.2		16.2	16.3	16.5	18
As of December 31, 2022	503,257,339	151	1,289	(1,293)	2,586	-	9	1,125	151	51,092	55,111	1,493	56,604
Gains and losses
recognized in equity					(1,062)		57	31	18		(956)	(29)	(985)
Net profit										15,174	15,174	778	15,952
Comprehensive income		-	-	-	(1,062)	-	57	31	18	15,174	14,218	749	14,967
Bonus share plan-related expenses	113										113	4	117
(Acquisition)/Disposal
of LVMH shares				(1,420)	(122)						(1,542)	-	(1,542)
Retirement of LVMH shares	(1,208,939)	(759)		759							-	-	-
Capital increase in subsidiaries											-	19	19
Interim and final dividends paid					(6,251)						(6,251)	(513)	(6,764)
Changes in control of consolidated entities	-											10	10
Acquisition and disposal of minority interests' shares	(38)										(38)	(4)	(42)
Purchase commitments for minority interests' shares										(594)	(594)	(74)	(668)
As of December 31, 2023	502,048,400	151	530	(1,953)	1,525	-	66	1,156	170	59,373	61,017	1,684	62,701
Gains and losses
recognized in equity					1,357		(228)	17	49		1,195	75	1,270
Net profit										12,550	12,550	408	12,958
Comprehensive income	-		-	-	1,357	-	(228)	17	49	12,550	13,745	483	14,228
Expenses related to bonus share and similar plans	187										187	4	191
(Acquisition)/Disposal
of LVMH shares	(235)				(56)						(292)	-	(292)
Capital increase reserved
for employees	200,000	-	53								53	-	53
Retirement of LVMH shares	(1,906,700)	(1)	(530)	1,585	(1,054)						-	-	-
Capital increase in subsidiaries											-	33	33
Interim and final dividends paid					(6,492)						(6,492)	(556)	(7,048)
Changes in control of consolidated entities	-											111	111
Acquisition and disposal of minority interests' shares	(237)										(237)	131	(106)
Purchase commitments for minority interests' shares										(465)	(465)	(120)	(585)
As of December 31, 2024	500,341,700	150	53	(603)	2,881	-	(161)	1,173	218	63,806	67,517	1,770	69,287
Gains and losses
recognized in equity					(3,323)	42	447	14	18		(2,802)	(133)	(2,934)
Net profit										10,878	10,878	344	11,222
Comprehensive income	-		-	-	(3,323)	42	447	14	18	10,878	8,076	211	8,288
Expenses related to bonus share and similar plans	159										159	5	165
(Acquisition)/Disposal
of LVMH shares				(1,548)	(69)						(1,617)	-	(1,617)
Retirement of LVMH shares	(2,654,760)	(1)	(53)	1,392	(1,338)						-	-	-
Capital increase in subsidiaries											-	13	13
Interim and final dividends paid					(6,463)						(6,463)	(415)	(6,878)
Changes in control of
consolidated entities											-	(2)	(2)
Acquisition and disposal
of minority interests' shares					5						5	(17)	(12)
Purchase commitments for
minority interests' shares										(206)	(206)	(88) (294)
As of December 31, 2025	497,686,940	149	-	(759)	(442)	42	286	1,186	237	66,773	67,472	1,477 68,949

‌Consolidated cash flow statement

CONSOLIDATED CASH FLOW STATEMENT

(EUR millions)		Notes	2025	2024 2023
I. OPERATING ACTIVITIES
Operating profit			17,099	18,907 22,560
(Income)/Loss and dividends received from joint ventures and associates		8	13	29 42
Net increase in depreciation, amortization and provisions			4,858	4,568 4,146
Depreciation of right-of-use assets		7.1	3,143	3,228 3,031
Other adjustments and computed expenses			(172)	488 (259)
	Cash from operations before changes in working capital		24,941	27,220 29,520
	Cost of net financial debt: interest paid		(290)	(357) (457)
	Lease liabilities: interest paid		(545)	(483) (356)
	Tax paid		(4,656)	(5,531) (5,730)
	Change in working capital	15.2	(576)	(1,925) (4,577)
	Net cash from/(used in) operating activities		18,874	18,924 18,400
II.	INVESTING ACTIVITIES
	Operating investments	15.3	(4,567)	(5,531) (7,478)
	Purchase and proceeds from sale of consolidated investments	2	149	(438) (721)
	Dividends received		21	9 5
	Tax paid related to non-current available for sale
	financial assets and consolidated investments		-	- -
	Purchase and proceeds from sale of non-current
	available for sale financial assets	9	(243)	(579) (116)
Net cash from/(used in) investing activities			(4,640)	(6,539) (8,310)
III. FINANCING ACTIVITIES
Interim and final dividends paid 15.4			(7,123)	(7,322) (7,159)
Purchase and proceeds from sale of minority interests			(1,091)	(173) (17)
Other equity-related transactions 15.4			(1,634)	(224) (1,569)
Proceeds from borrowings 19			2,095	3,595 5,990
Repayment of borrowings 19			(4,228)	(3,676) (3,968)
Repayment of lease liabilities 7.2			(2,974)	(2,915) (2,818)
Purchase and proceeds from sale of current available for sale financial assets 14			59	(1) 144
Net cash from/(used in) financing activities			(14,896)	(10,716) (9,397)
IV. EFFECT OF EXCHANGE RATE CHANGES			(248)	80 (273)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV)			(910)	1,749 420
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		15.1	9,269	7,520 7,100
CASH AND CASH EQUIVALENTS AT END OF PERIOD		15.1	8,359	9,269 7,520
TOTAL TAX PAID			(4,901)	(5,790) (6,106)

Alternative performance measure

The following table presents the reconciliation between "Net cash from operating activities" and "Operating free cash flow" for the fiscal years presented:

(EUR millions)	2025	2024 2023
Net cash from operating activities	18,874	18,924 18,400
Operating investments	(4,567)	(5,531) (7,478)
Repayment of lease liabilities	(2,974)	(2,915) (2,818)
Operating free cash flow (a)	11,333	10,478 8,104

Under IFRS 16, fixed lease payments are treated partly as interest payments and partly as principal repayments. For its own operational management purposes, the Group treats all lease payments as components of its "Operating free cash flow", whether the lease payments made are fixed or variable. In addition, for its own operational management purposes, the Group treats operating investments as components of its "Operating free cash flow".
‌NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES 8
2. CHANGES IN OWNERSHIP INTERESTS IN CONSOLIDATED ENTITIES 16
3. BRANDS, TRADE NAMES AND OTHER INTANGIBLE ASSETS 18
4. GOODWILL 20
5. IMPAIRMENT TESTING OF INTANGIBLE ASSETS
  WITH INDEFINITE USEFUL LIVES 20
6. PROPERTY, PLANT AND EQUIPMENT 22
7. LEASES 25
8. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES 29
9. NON-CURRENT AVAILABLE FOR SALE FINANCIAL ASSETS 30
10. OTHER NON-CURRENT ASSETS 30
11. INVENTORIES AND WORK IN PROGRESS 30
12. TRADE ACCOUNTS RECEIVABLE 31
13. OTHER CURRENT ASSETS 32
14. CURRENT AVAILABLE FOR SALE FINANCIAL ASSETS 32
15. CASH AND CHANGE IN CASH 33
16. EQUITY 34
17. BONUS SHARE AND SIMILAR PLANS 37
18. MINORITY INTERESTS 39
19. BORROWINGS 40
20. PROVISIONS AND OTHER NON-CURRENT LIABILITIES 43
21. PURCHASE COMMITMENTS FOR MINORITY INTERESTS' SHARES 44
22. TRADE ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES 44
23. FINANCIAL INSTRUMENTS AND MARKET RISK MANAGEMENT 45
24. SEGMENT INFORMATION 50
25. REVENUE AND EXPENSES BY NATURE 55
26. OTHER OPERATING INCOME AND EXPENSES 56
27. NET FINANCIAL INCOME/(EXPENSE) 57
28. INCOME TAXES 58
29. EARNINGS PER SHARE 60
30. PROVISIONS FOR PENSIONS, CONTRIBUTION TO MEDICAL COSTS
  AND OTHER EMPLOYEE BENEFIT COMMITMENTS 60
31. OFF-BALANCE SHEET COMMITMENTS 63
32. EXCEPTIONAL EVENTS AND LITIGATION 64
33. RELATED-PARTY TRANSACTIONS 64
34. SUBSEQUENT EVENTS 65

‌ACCOUNTING POLICIES
1. General framework and environment
  The consolidated financial statements for fiscal year 2025 were established in accordance with the international accounting standards and interpretations (IAS/IFRS) adopted by the European Union and applicable on December 31, 2025. These standards and interpretations have been applied consistently to the fiscal years presented. The consolidated financial statements for fiscal year 2025 were approved by the Board of Directors on January 27, 2026.
2. Changes in the accounting framework applicable to LVMH Standards, amendments and interpretations for which application became mandatory in 2025
  The application of standards, amendments and interpretations that took effect on January 1, 2025 did not have a material impact on the Group's financial statements.
  Other changes in the accounting framework and standards for which application is mandatory with effect later than January 1, 2025
  The impact of the application of IFRS 18 Presentation and Disclosure in Financial Statements - for which application is mandatory with effect from January 1, 2027 - is being assessed.
3. Taking into account climate change risks
  The Group's current exposure to the consequences of climate change is limited. As such, at this stage, the impact of climate change on the financial statements is not material.
  As part of the LIFE 360 program, which puts the Group's environmental strategy into practice, LVMH has launched a plan to transform its value chains.
  The implementation of this program is reflected in LVMH's financial statements in the form of operating investments, research and development expenses and corporate philanthropy expenses. In addition, profit from recurring operations in particular will be affected by changes in raw material prices; production, transport and distribution costs; and costs related to the end-of-life phase of its products.
  The short-term effects have been incorporated into the Group's strategic plans, which form the basis for conducting impairment tests on intangible assets with indefinite useful lives (see Note 5). The long-term effects of these changes are not quantifiable at this stage.
4. First-time adoption of IFRS
  The first accounts prepared by the Group in accordance with IFRS werethefinancialstatements for theyearended December 31,2005, with a transition date of January 1, 2004. IFRS 1 allowed for exceptions to the retrospective application of IFRS at the transition date. The procedures implemented by the Group with respect to these exceptions include the following:
  - business combinations: the exemption from retrospective application was not applied. The recognition of the merger of Moët Hennessy and Louis Vuitton in 1987 and all subsequent
    acquisitions were restated in accordance with IFRS 3; IAS 36 Impairment of Assets and IAS 38 Intangible Assets were applied retrospectively as of that date;
  - foreign currency translation of the financial statements of subsidiaries outside the eurozone: translation reserves relating to the consolidation of subsidiaries that prepare their accounts
    in foreign currency were reset to zero as of January 1, 2004 and offset against "Other reserves".
5. Presentation of the financial statements Definitions of "Profit from recurring operations" and "Other operating income and expenses"
  The Group's main business is the management and development of its brands and trade names. "Profit from recurring operations" is derived from these activities, whether they are recurring or non-recurring, core or incidental transactions.
  "Other operating income and expenses" comprises income statement items, which - due to their nature, amount or frequency - may not be considered inherent to the Group's recurring operations or its profit from recurring operations. This caption reflects in particular the impact of changes in the scope of consolidation, the impairment of goodwill, and the impairment and amortization of brands and trade names. It also includes any significant amounts relating to the impact of certain unusual transactions, such as gains or losses arising on the disposal of fixed assets, restructuring costs, costs in respect of disputes, or any other non-recurring income or expense that may otherwise distort the comparability of profit from recurring operations from one period to the next.
  Cash flow statement
  Net cash from operating activities is determined on the basis of operating profit, adjusted for non-cash transactions. In addition:
  - dividends received are presented according to the nature of the underlying investments, thus in "Net cash from operating activities" for dividends from joint ventures and associates
    and in "Net cash from financial investments" for dividends from other unconsolidated entities;
    - tax paid is presented according to the nature of the transaction from which it arises, thus in "Net cash from operating activities" for the portion attributable to operating transactions; in "Net
      cash from financial investments" for the portion attributable to transactions in available for sale financial assets, notably tax paid on gains from their sale; and in "Net cash from transactions relating to equity" for the portion attributable to transactions in equity, notably distribution taxes arising on the payment of dividends.
6. Use of estimates
  Preparing the consolidated financial statements requires the use of assumptions, estimates or other forms of judgment to measure certain balance sheet and income statement items. This includes, but is not limited to, the valuation of intangible assets (see Notes 1.16 and 5), leases (see Notes 1.15 and 7) and purchase commitments for minority interests' shares (see Notes 1.13 and 21), as well as the estimation of provisions for contingencies and losses, uncertain tax positions (see Note 20) and impairment of inventories (see Notes 1.18 and 11). It also concerns deferred tax assets (see Note 28) and assets and liabilities held for sale (see Notes 1.12 and 2). Such assumptions, estimates or other forms of judgment made on the basis of the information available or the situation prevailing at the date at which the financial statements are prepared may subsequently prove different from actual events.
7. Methods of consolidation
  The subsidiaries in which the Group holds a direct or indirect
  de facto or de jure controlling interest are fully consolidated.
  Jointly controlled companies and companies where the Group has significant influence but no controlling interest are accounted for using the equity method. Although jointly controlled, those entities are fully integrated within the Group's operating activities. LVMH discloses their net profit, as well as that of entities using the equity method (see Note 8), on a separate line, which forms part of profit from recurring operations.
  When an investment in a joint venture or associate accounted for using the equity method involves a payment tied to meeting specific performance targets, known as an earn-out payment, the estimated amount of this payment is included in the initial purchase price recorded in the balance sheet, with an offsetting entry under financial liabilities. Any difference between the initial estimate and the actual payment made is recorded as
  part of the value of investments in joint ventures and associates, without any impact on the income statement.
  The assets, liabilities, income and expenses of the Wines and Spirits distribution subsidiaries held jointly with the Diageo group are consolidated only in proportion to the LVMH Group's share of operations (see Note 1.27).
  The consolidation on an individual or collective basis of companies that are not consolidated (see "Companies not included in the scope of consolidation") would not have a significant impact on the Group's main aggregates.
8. Foreign currency translation of the financial statements of entities outside the eurozone
  The consolidated financial statements are presented in euros; the financial statements of entities presented in a different functional currency are translated into euros:
  - at the period-end exchange rates for balance sheet items;
  - at the average rates for the period for income statement items.
    Translation adjustments arising from the application of these rates are recorded in equity under "Cumulative translation adjustment".
    In the event of hyperinflation, IAS 29 is applied.
9. Foreign currency transactions and hedging of exchange rate risks
  Transactions of consolidated companies denominated in a currency other than their functional currencies are translated to their functional currencies at the exchange rates prevailing at the transaction dates.
  Accounts receivable, accounts payable and debts denominated in currencies other than the entities' functional currencies are translated at the applicable exchange rates at the fiscal year-end. Gains and losses resulting from this translation are recognized:
  - within "Cost of sales" for commercial transactions;
  - within "Net financial income/(expense)" for financial transactions.
    Foreign exchange gains and losses arising from the translation or elimination of intra-Group transactions or receivables and payables denominated in currencies other than the entity's functional currency are recorded in the income statement unless they relate to long-term intra-Group financing transactions, which can be considered equity-related transactions. In the latter case, translation adjustments are recorded in equity under "Cumulative translation adjustment".
    Derivatives used to hedge commercial, financial or investment transactions are recognized in the balance sheet at their market value (see Note 1.10) at the balance sheet date. Changes in the value of the effective portions of these derivatives are recognized as follows:
  - for hedges that are commercial in nature:
    - within "Cost of sales" for hedges of receivables and payables recognized in the balance sheet at the end of the period,
    - within equity under "Revaluation reserves" for hedges of future cash flows; this amount is transferred to cost of sales upon recognition of the hedged trade receivables and payables;
  - for hedges relating to the acquisition of fixed assets: within equity under "Revaluation reserves" for hedges of future cash flows; this amount is transferred to the asset side of the
    balance sheet, as part of the initial cost of the hedged item when accounting for the latter, and then to the income statement in the event of the disposal or impairment of the hedged item;
  - for hedges that are tied to the Group's investment portfolio (hedging the net worth of subsidiaries whose functional currency is not the euro): within equity under "Cumulative
    translation adjustment"; this amount is transferred to the income statement upon the sale or liquidation (whether partial or total) of the subsidiary whose net worth is hedged;
10. Fair value measurement
  - for hedges that are financial in nature: within "Net financial income/(expense)", under "Other financial income and expenses".
    Changes in the value of these derivatives related to forward points associated with forward contracts, as well as in the time value component of options, are recognized as follows:
  - for hedges that are commercial in nature: within equity under "Revaluation reserves". The cost of the forward contracts (forward points) and of the options (premiums) is transferred
    to "Cost of foreign exchange derivatives" within "Net financial income/(expense)" upon realization of the hedged transaction;
  - for hedges that are tied to the Group's investment portfolio or financial in nature: expenses and income arising from discounts or premiums are recognized in "Borrowing costs"
    on a pro rata basis over the term of the hedging instruments. The difference between the amounts recognized in "Net financial income/(expense)" and the change in the value of forward points is recognized in equity under "Revaluation reserves".
    Market value changes of derivatives not designated as hedges are recorded within "Net financial income/(expense)".
    See also Note 1.22 for the definition of the concepts of effective and ineffective portions.
    Fair value (or market value) is the price that would be obtained from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants.
    The assets and liabilities measured at fair value in the balance sheet are as follows:
    Approaches to determining fair value Amounts recorded at balance sheet date
    Vineyard land Based on recent transactions in similar assets. See Note 1.14. Note 6
    Grape harvests Based on purchase prices for equivalent grapes. See Note 1.18. Note 11
    Derivatives Based on market data and according to commonly used valuation models. See Note 1.23.
    Note 23
    Borrowings hedged against changes
    in value due to interest rate fluctuations
    Liabilities in respect of purchase commitments for minority interests' shares priced according to fair value
    Based on market data and according to commonly used valuation models. See Note 1.22.
    Generally based on the market multiples of comparable companies. See Note 1.13.
    Note 19
    Note 21
    Available for sale financial assets Quoted investments: price quotations at the close of trading
    on the balance sheet date. Unquoted investments: estimated
    net realizable value, either according to formulas based on market data or based on private quotations. See Note 1.17.
    Note 9, Note 14
    Cash and cash equivalents (SICAV and FCP funds)
    Based on the liquidation value at the balance sheet date. See Note 1.20.
    Note 15
    No other assets or liabilities have been remeasured at market value at the balance sheet date.
11. Brands and other intangible assets
  Only acquired brands and trade names that are well known and individually identifiable are recorded as assets based on their market values at their dates of acquisition.
  Brands and trade names are chiefly valued using the forecast discounted cash flow method, or based on comparable transactions (i.e. using the revenue and net profit coefficients employed for recent transactions involving similar brands) or stock market multiples observed for related businesses. Other complementary methods may also be employed: the relief from royalty method, involving equating a brand's value with the present value of the royalties required to be paid for its use; the margin differential method, applicable when a measurable difference can be identified in the amount of revenue generated by a branded product in comparison with a similar unbranded product; and finally the equivalent brand reconstitution method involving, in particular, estimation of the amount of advertising and promotion expenses required to generate a similar brand.
  Costs incurred in creating a new brand or developing an existing brand are expensed.
  Brands, trade names and other intangible assets with finite useful lives are amortized over their estimated useful lives. The classification of a brand or trade name as an asset of finite or indefinite useful life is generally based on the following criteria:
  - the brand or trade name's overall positioning in its market expressed in terms of volume of activity, international presence and reputation;
  - its expected long-term profitability;
  - its degree of exposure to changes in the economic environment;
  - any major event within its business segment liable to compromise its future development;
  - its age.
    Amortizable lives of brands and trade names with finite useful lives range from 5 to 20 years, depending on their anticipated period of use.
    Impairment tests are carried out for brands, trade names and other intangible assets using the methodology described in Note 1.16.
    Research expenditure is not capitalized. New product development expenditure is not capitalized unless the final decision has been made to launch the product.
    Intangible assets other than brands and trade names are amortized over the following periods:
  - rights attached to sponsorship agreements and media partnerships are amortized over the life of the agreements, depending on how the rights are used;
  - development expenditure is amortized over 3 years at most;
  - software and websites are amortized over 1 to 8 years.
12. Changes in ownership interests in consolidated entities
  When the Group takes de jure or de facto control of a business, its assets, liabilities and contingent liabilities are estimated at their market value as of the date when control is obtained; the difference between the cost of taking control and the Group's share of the market value of those assets, liabilities and contingent liabilities is recognized as goodwill.
  The cost of taking control is the price paid by the Group in the context of an acquisition, or an estimate of this price if the transaction is carried out without any payment of cash, excluding acquisition costs, which are disclosed under "Other operating income and expenses".
  The difference between the carrying amount of minority interests purchased after control is obtained and the price paid for their acquisition is deducted from equity.
  Goodwill is accounted for in the functional currency of the acquired entity.
  Goodwill is not amortized but is subject to annual impairment testing using the methodology described in Note 1.16. Any impairment expense recognized is included within "Other operating income and expenses".
  In accordance with IFRS 5, if an asset (or asset group) meets the criteria to be classified as held for sale, it is presented within a separate "Assets held for sale" line item in the consolidated balance sheet, with any associated liabilities presented within "Liabilities held for sale". An asset classified as held for sale is measured at the lower of its carrying amount and fair value less costs to sell.
13. Purchase commitments for minority interests' shares
  The Group has granted put options to minority shareholders of certain fully consolidated subsidiaries.
  Pending specific guidance from IFRSs regarding this issue, the Group recognizes these commitments as follows:
  - the value of the commitment at the balance sheet date appears in "Purchase commitments for minority interests' shares", as a liability on its balance sheet;
  - the corresponding minority interests are canceled;
  - for commitments granted prior to January 1, 2010, the difference between the amount of the commitments and canceled minority interests is maintained as an asset on the balance
    sheet under goodwill, as are subsequent changes in this difference. For commitments granted as from January 1, 2010, the difference between the amount of the commitments and minority interests is recorded in equity, under "Other reserves".
    This recognition method has no effect on the presentation of minority interests within the income statement.
14. Property, plant and equipment
  With the exception of vineyard land, the gross value of property, plant and equipment is recognized at acquisition cost.
  Vineyard land is recognized at the market value at the balance sheet date. This valuation is based on official published data for recent transactions in the same region. Any difference compared to historical cost is recognized within equity in "Revaluation reserves". If the market value falls below the acquisition cost, the resulting impairment is charged to the income statement.
  Buildings mostly occupied by third parties are reported as investment property, at acquisition cost. Investment property is thus not remeasured at market value.
  The depreciable amount of property, plant and equipment comprises the acquisition cost of their components less residual value, which corresponds to the estimated disposal price of the asset at the end of its useful life.
  Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. For leased assets, the depreciation period cannot be longer than that used for the calculation of the lease liability.
  The estimated useful lives are as follows:
  - buildings including investment property 20 to 100 years;
  - machinery and equipment 3 to 25 years;
  - leasehold improvements 3 to 10 years;
  - producing vineyards 18 to 25 years.
  Expenses for maintenance and repairs are charged to the income statement as incurred.
15. Leases
  The Group has applied IFRS 16 Leases since January 1, 2019. The initial application was carried out using the "modified retrospective" approach to transition; see Note 1.2 to the 2019 consolidated financial statements for details of this initial application procedure for IFRS 16 and the impact of its initial application on the 2019 financial statements.
  When entering into a lease, a liability is recognized in the balance sheet, measured at the discounted present value of future payments of the fixed portion of lease payments and offset against a right-of-use asset depreciated over the lease term. The amount of the liability depends to a large degree on the assumptions used for the lease term and, to a lesser extent, the discount rate. The Group's extensive geographic coverage means it encounters a wide range of different legal conditions when entering into contracts.
  The lease term generally used to calculate the liability is the term of the initially negotiated lease, not taking into account any early termination options, except in special circumstances.
  When leases contain extension options, the term used for the calculation of the liability may include these periods, mainly when the anticipated period of use of the fixed assets, whether under a new or existing lease, is greater than the initial contractual lease term.
  The lease term to be used in accounting for lease liabilities when the underlying assets are capitalized even though the obligation to make lease payments covers a period of less than twelve months is consistent with the anticipated period of use of the invested assets. Most often, this involves leases for retail locations that are automatically renewable on an annual basis.
  The standard requires the discount rate to be determined for each lease using the incremental borrowing rate of the subsidiary entering into the lease. In practice, given the structure of the Group's financing - virtually all of which is held or guaranteed by LVMH SE - this incremental borrowing rate is generally the total of the risk-free rate for the currency of the lease, with reference to its term, and the Group's credit risk for this same currency and over the same term.
  Leasehold rights and property, plant and equipment related to restoration obligations for leased facilities are presented within "Right-of-use assets" and subject to depreciation under the same principles as those described above.
  The Group has implemented a dedicated IT solution to gather lease data and run the calculations required by the standard.
  Since the application of IFRS 16 had a significant impact on the cash flow statement given the importance of fixed lease payments to the Group's activities, specific indicators are used for internal performance monitoring requirements and financial communication purposes in order to present consistent performance measures, independently of the fixed or variable nature of lease payments. One such alternative performance measure is "Operating free cash flow", which is calculated by deducting capitalized fixed lease payments in their entirety from cash flow. The reconciliation between "Net cash from operating activities" and "Operating free cash flow" is presented in the consolidated cash flow statement.
16. Impairment testing of fixed assets
  Property, plant and equipment, intangible assets, and all leased fixed assets are subject to impairment testing whenever there is any indication that an asset may be impaired (particularly following major changes in the asset's operating conditions), and in any event at least annually in the case of intangible assets with indefinite useful lives (mainly brands, trade names and goodwill). When the carrying amount of assets with indefinite useful lives is greater than the higher of their value in use or market value, the resulting impairment loss is recognized within "Other operating income and expenses", allocated on a priority basis to any existing goodwill.
  Value in use is based on the present value of the cash flows expected to be generated by these assets, taking into account their residual value. Market value is estimated by comparison with recent similar transactions or on the basis of valuations performed by independent experts for the purposes of a disposal transaction.
  Cash flows are forecast at Group level for each business segment, defined as one or several brands or trade names under the responsibility of a dedicated management team; in general, a business segment as defined above corresponds to a Maison within the Group. Smaller-scale cash-generating units, such as a group of stores, may be distinguished within a particular business segment.
  The forecast data required for the discounted cash flow method is based on annual budgets and multi-year business plans prepared by the management of the business segments concerned. Detailed forecasts cover a five-year period, which may be extended for brands undergoing strategic repositioning or whose production cycle exceeds five years. An estimated terminal value is added to the value resulting from discounted forecast cash flows, which corresponds to the capitalization in perpetuity of cash flows most often arising from the last year of the plan. Discount rates are set for each business segment with reference to companies engaged in comparable businesses. Forecast cash flows are discounted on the basis of the rate of return to be expected by an investor in the applicable business and an assessment of the risk premium associated with that business. When several forecast scenarios are developed, the probability of occurrence of each scenario is assessed.
17. Available for sale financial assets
  Available for sale financial assets are classified as current or non-current based on their type.
  Non-current available for sale financial assets comprise strategic and non-strategic investments whose estimated period and form of ownership justify such classification.
  Current available for sale financial assets (presented in "Other current assets"; see Note 13) include temporary investments in shares, shares of SICAVs, FCPs and other mutual funds, excluding investments made as part of day-to-day cash management, which are accounted for as "Cash and cash equivalents" (see Note 1.20).
  Available for sale financial assets are measured at their listed value at the fiscal year-end date in the case of quoted investments, and in the case of unquoted investments at their estimated net realizable value, assessed either according to formulas based on market data or based on private quotations at the fiscal year-end date.
  Positive or negative changes in value are recognized under "Net financial income/(expense)" (within "Other financial income and expenses"; see Note 27) for all shares held in the portfolio during the reported periods. By way of exception, changes in the value of non-current available for sale financial assets may be recognized within "Other items of comprehensive income, not transferable to income statement".
18. Inventories and work in progress
  Inventories other than wine produced by the Group are recorded at the lower of cost (excluding interest expense) and net realizable value; cost comprises manufacturing cost (finished goods) or purchase price, plus incidental costs (raw materials, merchandise).
  Wine produced by the Group, including champagne, is measured on the basis of the applicable harvest market value, which is determined by reference to the average purchase price of equivalent grapes, as if the grapes harvested had been purchased from third parties. Until the date of the harvest, the value of grapes is calculated on a pro rata basis, in line with the estimated yield and market value.
  Inventories are valued using either the weighted average cost or the FIFO method, depending on the type of business.
  Due to the length of the aging process required for champagnes, spirits (cognac, whisky and rum, in particular) and wines, the holding period for these inventories generally exceeds one year. However, in accordance with industry practices, these inventories are classified as current assets.
  Provisions for impairment of inventories are chiefly recognized for businesses other than Wines and Spirits. They are generally required because of product obsolescence (end of season or collection, expiration date approaching, etc.) or lack of sales prospects.
19. Trade accounts receivable, loans and other receivables
  Trade accounts receivable, loans and other receivables are recorded at amortized cost, which corresponds to their face value. Impairment is recognized for the portion of loans and receivables not covered by credit insurance when such receivables are recorded, in the amount of the losses expected upon maturity. This reflects the probability of counterparty default and the expected loss rate, measured using historical statistical data, information provided by credit bureaus, or ratings by credit rating agencies, depending on the specific case.
  The amount of long-term loans and receivables (i.e. those falling due in more than one year) is subject to discounting, the effects of which are recognized under "Net financial income/(expense)", using the effective interest method.
20. Cash and cash equivalents
  Cash and cash equivalents comprise cash and highly liquid money-market investments subject to a negligible risk of changes in value over time.
  Money-market investments are measured at their market value, based on price quotations at the close of trading and on the exchange rate prevailing at the fiscal year-end date, with any changes in value recognized as part of "Net financial income/ (expense)".
21. Provisions
  A provision is recognized whenever an obligation exists towards a third party resulting in a probable disbursement for the Group, the amount of which may be reliably estimated. See also Notes 1.25 and 20.
  If the date at which this obligation is to be discharged is in more than one year, the provision amount is discounted, the effects of which are recognized in "Net financial income/(expense)" using the effective interest method.
22. Borrowings
  Borrowings are measured at amortized cost, i.e. nominal value net of issue premiums and issuance costs, which are charged over time to "Net financial income/(expense)" using the effective interest method.
  In the case of hedging against fluctuations in the value of borrowings resulting from changes in interest rates, both the hedged amount of borrowings and the related hedging instruments are measured at their market value at the balance sheet date, with any changes in those values recognized within "Net financial income/(expense)", under "Fair value adjustment of borrowings and interest rate hedges". See Note 1.10 regarding the measurement of hedged borrowings at market value. Interest income and expenses related to hedging instruments are recognized within "Net financial income/(expense)", under "Borrowing costs".
  In the case of hedging against fluctuations in future interest payments, the related borrowings remain measured at their amortized cost while any changes in value of the effective hedge portions are taken to equity as part of "Revaluation reserves".
  Changes in value of non-hedging derivatives, and of the ineffective portions of hedges, are recognized within "Net financial income/(expense)".
  Net financial debt comprises short- and long-term borrowings, the market value at the balance sheet date of interest rate derivatives, less the amount at the balance sheet date of non-current available for sale financial assets used to hedge financial debt, current available for sale financial assets, cash and cash equivalents, in addition to the market value at that date of foreign exchange derivatives related to any of the aforementioned items.
23. Derivatives
  The Group enters into derivative transactions as part of its strategy for hedging foreign exchange, interest rate and precious metal price risks.
  To hedge against commercial, financial and investment foreign exchange risk, the Group uses options, forward contracts, foreign exchange swaps and cross-currency swaps. The time value of options, the forward point component of forward contracts and foreign exchange swaps, as wellas the foreign currency basis spread component of cross-currency swaps are systematically excluded from the hedge relation. Consequently, only the intrinsic value of the instruments is considered a hedging instrument. Regarding hedged items (future foreign currency cash flows, commercial or financial liabilities and accounts receivable in foreign currencies, subsidiaries' equity denominated in a functional currency other than the euro), only their change in value in respect of foreign exchange risk is considered a hedged item. As such, aligning the hedging instruments' main features (nominal values, currencies, maturities) with those of the hedged items makes it possible to perfectly offset changes in value.
  Derivatives are recognized in the balance sheet at their market value at the balance sheet date. Changes in their value are accounted for as described in Note 1.9 in the case of foreign exchange hedges and as described in Note 1.22 in the case of interest rate hedges.
  Market value is based on market data and commonly used valuation models.
  Derivatives with maturities in excess of 12 months are disclosed as non-current assets and liabilities.
24. LVMH shares
  LVMH shares held by the Group are measured at their acquisition cost and recognized as a deduction from consolidated equity, irrespective of the purpose for which they are held.
  In the event of disposal, the cost of the shares disposed of is determined by allocation category (see Note 16.3) using the FIFO method.
  Gains and losses on disposal, net of income taxes, are taken directly to equity.
25. Pensions, contribution to medical costs and other employee benefit commitments
  When plans related to retirement bonuses, pensions, contributions to medical costs, or other employee benefit commitments entail the payment by the Group of contributions to third-party organizations that assume sole responsibility for subsequently paying such retirement bonuses, pensions or contributions to medical costs, these contributions are expensed in the fiscal year in which they fall due, with no liability recorded on the balance sheet.
  When the payment of retirement bonuses, pensions, contributions to medical costs, or other employee benefit commitments is to be borne by the Group, a provision is recorded in the balance sheet in the amount of the corresponding actuarial commitment (see Note 30). Changes in this provision are recognized as follows:
  - the portion related to the cost of services rendered by employees and net interest for the fiscal year is recognized in profit from recurring operations for the fiscal year;
  - the portion related to changes in actuarial assumptions and to differences between projected and actual data (experience adjustments) is recognized in gains and losses taken to equity.
    If this commitment is partially or fully funded by payments made by the Group to external financial organizations, these dedicated funds are deducted from the actuarial commitment recorded in the balance sheet.
    The actuarial commitment is calculated based on assessments that are specifically designed for the country and the Group company concerned. In particular, these assessments include assumptions regarding discount rates, salary increases, inflation, life expectancy and staff turnover.
26. Current and deferred tax
  The tax expense comprises current tax payable by consolidated companies, deferred tax resulting from temporary differences, and the change in uncertain tax positions.
  Deferred tax is recognized in respect of temporary differences arising between the value of assets and liabilities for purposes of consolidation and the value resulting from the application of tax regulations.
  Deferred tax is measured on the basis of the income tax rates enacted at the balance sheet date; the effect of changes in rates is recognized during the periods in which changes are enacted.
  Future tax savings from tax losses carried forward are recorded as deferred tax assets on the balance sheet and impaired if they are deemed not recoverable; only amounts for which future use is deemed probable are recognized.
  Deferred tax assets and liabilities are not discounted.
  Taxes payable in respect of the distribution of retained earnings of subsidiaries give rise to provisions if distribution is deemed probable.
27. Revenue recognition Definition of revenue
  Revenue mainly comprises retail sales within the Group's store network (including e-commerce websites) and wholesale sales to agents and distributors. Sales made in stores owned by third
  parties are treated as retail transactions if the risks and rewards of ownership of the inventories are retained by the Group.
  Direct sales to customers are mostly made through retail stores in Fashion and Leather Goods and Selective Retailing, as well as certain Watches and Jewelry and Perfumes and Cosmetics brands. The Group recognizes revenue when title transfers to third-party customers, which is generally at the time of purchase by retail customers.
  Wholesale sales mainly concern the Wines and Spirits businesses, as well as certain Perfumes and Cosmetics and Watches and Jewelry brands. The Group recognizes revenue when title transfers to third-party customers.
  Revenue includes shipment and transportation costs re-billed to customers only when these costs are included in products' selling prices as a lump sum.
  Sales of services, mainly involved in the Group's "Other activities" segment, are recognized as the services are provided.
  Revenue is presented net of all forms of discount. In particular, payments made in order to have products referenced or, in accordance with agreements, to participate in advertising campaigns with the distributors, are deducted from related revenue.
  Provisions for product returns
  Perfumes and Cosmetics companies and, to a lesser extent, Fashion and Leather Goods and Watches and Jewelry companies may accept the return of unsold or outdated products from their customers and distributors. Retail sales, and in particular online sales, also result in product returns from customers.
  Where these practices are applied, revenue is reduced by the estimated amount of such returns, and a provision is recognized within "Other current liabilities" (see Note 22.2), along with a corresponding entry made to inventories. The estimated rate of returns is based on historical statistical data.
  Businesses undertaken in partnership with Diageo
  A significant proportion of revenue for the Group's Wines and Spirits businesses is generated within the framework of distribution agreements with Diageo, generally taking the form of shared entities that sell and deliver both groups' products to customers; the income statement and balance sheet of these entities is apportioned between LVMH and Diageo based on distribution agreements. According to those agreements, the assets, liabilities, income, and expenses of such entities are consolidated only in proportion to the Group's share of operations.
28. ‌Advertising and promotion expenses
  Advertising and promotion expenses include the costs of producing advertising media, purchasing media space, manufacturing samples, publishing catalogs and, in general, the cost of all activities designed to promote the Group's brands and products.
  Advertising and promotion expenses are recorded within marketing and selling expenses upon receipt or production of goods or upon completion of services rendered.
29. Bonus share and similar plans
  The expected benefit granted to recipients under bonus share plans is calculated on the basis of the closing share price on the day before the Board of Directors' meeting at which the plan is instituted, less the amount of dividends expected to accrue during the vesting period. For any bonus share plans subject to performance conditions, the expense for the fiscal year includes provisional allocations for which the conditions are deemed likely to be met.
  For all plans, the amortization expense is apportioned on a straight-line basis in the income statement over the vesting period, with a corresponding impact on reserves in the balance sheet.
  For the LVMH Shares plan, the fair value of the benefit granted to employees (discount and matching employer contribution) is calculated on the basis of the share price on the date the shares are allocated.
30. Earnings per share
  Earnings per share are calculated based on the weighted average number of shares outstanding during the fiscal year, excluding treasury shares.
  Diluted earnings per share are calculated based on the weighted average number of shares before dilution and adding the weighted average number of shares that would result from the exercise of any diluting instrument during the fiscal year. It is assumed for the purposes of this calculation that the funds received from the exercise of options, plus the amount not yet expensed for bonus share and similar plans (see Note 1.29), would be employed to buy back LVMH shares at a price corresponding to their average trading price over the fiscal year.

CHANGES IN OWNERSHIP INTERESTS IN CONSOLIDATED ENTITIES

Fiscal year 2025 Loro Piana
On July 31, 2025, LVMH raised its stake in Loro Piana to 94% after acquiring a 9% stake from minority shareholders for 1.0 billion euros.
No other significant changes in ownership interests in consolidated companies took place in fiscal year 2025.
DFS
In January 2026, LVMH finalized the sale of a significant portion of DFS' businesses as part of its plan to divest from DFS. Consequently, the assets and liabilities related to this business, for a net amount of 1.2 billion euros, were reclassified under "Assets and liabilities held for sale" (see Notes 1.12 and 24) in the consolidated balance sheet as of December 31, 2025, in particular the trade name valued at 1.5 billion euros. The 0.5 billion euro estimated loss was recognized within "Other operating income and expenses" (see Note 26). In 2025, revenue for DFS came to 1,494 million euros.
Fiscal year 2024 Partnership with Accor to develop Orient Express
In June 2024, LVMH and Accor entered into a strategic partnership to accelerate the development of Orient Express, in particular through the operation of trains, hotels and sailing ships.
Other
In January 2024, LVMH acquired a majority stake in Nuti Ivo SpA, an Italian company founded in 1955, specializing in leather-working. Throughout 2024, LVMH acquired majority stakes, for non-material amounts, in companies specializing in a range of different craft expertise, including leather-working, jewelry, metal parts and watch movements.
In June 2024, LVMH acquired the entire share capital of Swiza, the owner of high-end Swiss clock manufacturer L'Epée 1839.
In June 2024, LVMH acquired an additional 10% stake in Maison Francis Kurkdjian.
In September 2024, LVMH sold 100% of Off-White.
In October 2024, LVMH acquired the entire share capital of weekly magazine Paris Match, one of France's most high-profile press publications, launched in March 1949, and acquired an additional 5% stake in Sephora's Middle East business.
Equity investments newly consolidated in 2024 did not have a significant impact on revenue or profit from recurring operations for the fiscal year.
Fiscal year 2023 Minuty
In January 2023, Moët Hennessy took a majority stake in the share capital of Minuty SAS and acquired control of the company's winegrowing assets. Château Minuty is renowned worldwide for its rosé wine, which has been a Grand Cru Classé since 1955, and is located in Gassin on the peninsula of Saint-Tropez (France).
Other
In September 2023, LVMH acquired a majority stake in the Platinum Invest group, a French high jewelry manufacturer, in order to reinforce its production capacity, in particular for Tiffany.
In September 2023 and November 2023, Thélios acquired all the shares in the companies that own the iconic French and American eyewear brands Vuarnet and Barton Perreira, respectively.
LVMH Métiers d'Art acquired a majority stake in Spanish tannery Verdeveleno in October 2023, and in December 2023 it acquired all the shares in Menegatti, an Italian company specializing in the production of metal parts.
In May 2023, LVMH entered into an agreement to acquire a majority stake in Nuti Ivo SpA.
Equity investments newly consolidated in 2023 did not have a significant impact on revenue or profit from recurring operations for the fiscal year.
Starboard & Onboard Cruise Services
In December 2023, LVMH sold an 80% stake in Cruise Line Holdings Co. - the holding company of the Starboard & Onboard Cruise Services businesses - to a group of private investors.

Impact on net cash and cash equivalents of changes in ownership interests in consolidated entities

(EUR millions)	2025	2024 2023
Purchase price of consolidated investments and of minority interests' shares	(1,126)	(810) (885)
Positive cash balance/(net overdraft) of companies acquired	6	91 80
Proceeds from sale of consolidated investments	179	111 69
(Positive cash balance)/Net overdraft of companies sold	(1)	(3) (2)
Impact of changes in ownership interests in consolidated entities on net cash and cash equivalents	(942)	(612) (738)
O/ which: Purchase and proceeds /rom sale o/ consolidated investments Purchase and proceeds /rom sale o/ minority interests	149 (1,091)	(438) (721) (173) (17)

In 2025, the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities primarily arose from the acquisition of an additional 9% stake in Loro Piana from minority shareholders.

In 2024, the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities primarily arose from the acquisition of controlling interests in Orient Express, Paris Match, Nuti Ivo and Swiza, partially offset by the disposal of Off-White.

In 2023, the impact on net cash and cash equivalents of changes in ownership interests in consolidated entities primarily arose from the acquisitions of Minuty, Platinum Invest, Barton Perreira and Vuarnet. In addition to the net cash impact of the purchase and sale of consolidated investments, the Group may take on the borrowings of entities acquired (see Note 19). In most cases, such borrowings are repaid to third-party lenders.

‌BRANDS, TRADE NAMES AND OTHER INTANGIBLE ASSETS

(EUR millions)	2025			2024 2023
	Gross	Amortization and impairment	Net	Net Net
Brands	21,691	(737)	20,954	21,855 21,485
Trade names	313	(48)	265	2,467 2,336
License rights	110	(105)	5	11 17
Software, websites	4,413	(3,274)	1,139	1,230 1,035
Other	1,577	(809)	768	716 717
Total	28,104	(4,974)	23,129	26,280 25,589

The carrying amounts of brands, trade names and other intangible assets changed as follows during the fiscal year:

Gross value

(EUR millions)

Brands Trade names Software, websites

Other intangible

assets

Total

As of December 31, 2024 22,664 4,205 4,398 1,910 33,177

Acquisitions - - 284 535 819

Disposals and retirements (53) - (192) (416) (661) Changes in the scope of consolidation - - - 1 1

Translation adjustment (921) (451) (170) (37) (1,578)

Reclassifications (a) - (3,441) 92 (305) (3,653)

As of December 31, 2025 21,691 313 4,413 1,687 28,104

Amortization and impairment

(EUR millions)

Brands Trade names Software, websites

Other intangible

assets

Total

As of December 31, 2024 (809) (1,737) (3,168) (1,182) (6,896)

Amortization expense (4) - (534) (212) (750)

Impairment expense - (487) (2) (20) (509)

Disposals and retirements 53 - 193 416 661

Changes in the scope of consolidation - - - - -Translation adjustment 23 214 126 23 386

Reclassifications (a) - 1,962 111 61 2,134

As of December 31, 2025 (737) (48) (3,274) (915) (4,974)

Carrying amount as of December 31, 2025 20,954 265 1,139 772 23,129

(a) The amounts presented in "Reclassifications" mainly comprise DFS assets reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

Translation adjustments mainly related to brands and trade names recognized in US dollars, based on fluctuations in the US dollar-to-euro exchange rate between January 1 and December 31, 2025.

The carrying amounts of brands, trade names and other intangible assets changed as follows during prior fiscal years:

Carrying amount

(EUR millions)

Brands Trade names Software, websites

Other intangible

assets

Total

As of December 31, 2022 21,545 2,410 926 550 25,432

Acquisitions - - 352 648 1,000

Disposals and retirements - - - - -Changes in the scope of consolidation 110 - 1 13 124

Amortization expense (7) - (454) (259) (720)

Impairment expense - - 3 (1) 2

Translation adjustment (163) (75) (16) 2 (251)

Reclassifications - - 223 (220) 3

As of December 31, 2023 21,485 2,336 1,035 733 25,589

Acquisitions - - 393 444 837

Disposals and retirements - - - - -Changes in the scope of consolidation (91) - 1 115 25

Amortization expense (7) - (511) (296) (814)

Impairment expense 20 - (3) 1 17

Translation adjustment 447 132 21 4 604

Reclassifications - - 295 (272) 22

As of December 31, 2024 21,855 2,467 1,230 728 26,280

(EUR millions)	2025			2024 2023
	Gross	Amortization and impairment	Net	Net Net
Wines and Spirits	1,487	(123)	1,365	1,454 1,402
Fashion and Leather Goods	8,830	(316)	8,514	8,518 8,704
Perfumes and Cosmetics	684	(67)	617	629 631
Watches and Jewelry	10,174	(106)	10,068	10,864 10,458
Selective Retailing	265	(1)	265	2,467 2,336
Other activities	563	(173)	390	390 290
Total	22,004	(785)	21,218	24,322 23,821

The breakdown of brands and trade names by business group is as follows:

The brands and trade names recognized are those that the Group has acquired. As of December 31, 2025, the principal acquired brands and trade names were:

Wines and Spirits: Veuve Clicquot, Krug, Château d'Yquem, Belvedere, Glenmorangie, Bodega Numanthia, Château d'Esclans, Armand de Brignac, Joseph Phelps and Château
Minuty;
Fashion and Leather Goods: Louis Vuitton, Fendi, Celine, Loewe, Givenchy, Kenzo, Berluti, Pucci, Loro Piana, Rimowa and Christian Dior Couture;
Perfumes and Cosmetics: Parfums Christian Dior, Guerlain, Parfums Givenchy, Make Up For Ever, Benefit Cosmetics, Fresh, Acqua di Parma, Fenty, Ole Henriksen, Maison Francis
Kurkdjian and Officine Universelle Buly 1803;
Watches and Jewelry: Tiffany, Bvlgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred, L'Epée 1839 and Repossi;
Selective Retailing: Sephora and Le Bon Marché;
Other activities: the publications of the media group Les Échos-Investir, the Le Parisien-Aujourd' hui en France daily newspaper, Paris Match magazine, the Royal Van Lent-Feadship

brand, La Samaritaine, the Belmond hotel group and the Cova pastry shop brand.

These brands and trade names are recognized in the balance sheet at their value determined as of the date of their acquisition by the Group, which may be much less than their value in use or their market value as of the closing date for the Group's consolidated financial statements. This is notably the case for the brands Louis Vuitton, Veuve Clicquot and Parfums Christian Dior, and the trade name Sephora, with the understanding that this list must not be considered exhaustive.

See also Note 5 for the impairment testing of brands, trade names and other intangible assets with indefinite useful lives.

‌GOODWILL

(EUR millions)

Goodwill arising on consolidated investments Goodwill arising on purchase commitments for minority interests' shares

2025

2024 2023

Gross

19,133

386

Impairment

(1,205)

Net

17,928

386

Net Net

19,068 18,340

1,239 5,682

Total

19,520

(1,205)

18,315

20,307 24,022

Changes in net goodwill during the fiscal years presented break down as follows:

(EUR millions)	2025			2024 2023
	Gross	Impairment	Net	Net Net
As of January 1	22,047	(1,740)	20,307	24,022 24,782
Changes in the scope of consolidation	5	3	8	156 713
Changes in purchase commitments
for minority interests' shares	(900)	-	(900)	(4,378) (1,235)
Changes in impairment	-	(135)	(135)	(12) -
Translation adjustment	(1,049)	84	(965)	520 (237)
Other movements, including transfers (a)	(584)	584	-	- -
As of December 31	19,520	(1,205)	18,315	20,307 24,022

(a) The amounts presented in "Other movements, including transfers" comprise DFS goodwill reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

See Note 21 for goodwill arising on purchase commitments for minority interests' shares.

Translation adjustments mainly related to goodwill recognized in US dollars, based on fluctuations in the US dollar-to-euro exchange rate between January 1 and December 31, 2025.

In 2024, changes in the scope of consolidation mainly resulted from the acquisitions of Swiza and Nuti Ivo, the investment in

Orient Express, and various acquisitions carried out in prior periods but that had not yet been consolidated as of December 31, 2023, partially offset by the disposal of Off-White. See Note 2.

In 2023, changes in the scope of consolidation mainly resulted from the acquisitions of Minuty, Platinum Invest, Barton Perreira and Vuarnet. See Note 2.

IMPAIRMENT TESTING OF INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

Brands, trade names and other intangible assets with indefinite useful lives as well as the goodwill arising on acquisition were subject to annual impairment testing. No significant impairment expenses were recognized in respect of these items during the course of fiscal year 2025.

As described in Note 1.16, these assets are generally valued on the basis of the present value of forecast cash flows determined

in the context of multi-year business plans drawn up each fiscal year. The consequences of the macroeconomic environment continue to disrupt the commercial operations of certain Maisons, with varying impacts depending on the geographic region and business group. However, the Group believes that these disruptions are not likely to affect the achievement of objectives set in multi-year business plans.

The main assumptions used to determine these forecast cash flows are as follows:

(as %)	2025					2024
	Discount rate	Annual	Growth	Post-tax	Annual	Growth
				discount rate	growth rate for revenue	rate for the period
	Post-tax Pre-tax	for revenue	the period	discount rate	growth rate for revenue	rate for the period
		during the	after the		during the	after the
		plan period	plan		plan period	plan
Wines
and Spirits	6.9 9.3	5.0	2.1 to 3.5	6.9 to 7.4	4.8	2.0
Fashion and
Leather Goods	7.7 to 8.7 10.4 to 11.8	6.5	2.2	8.3 to 9.1	8.2	2.8
Perfumes and
Cosmetics	8.1 to 8.4 10.9 to 11.4	4.1	2.2	8.3 to 8.9	7.2	2.7
Watches
and Jewelry	8.3 to 8.7 11.2 to 11.8	6.4	2.2 to 2.8	8.3 to 8.9	6.1	2.5
Selective
Retailing	9.3 12.6	5.1	2.0	9.4 to 10.0	6.1	1.5 to 2.0
Other	9.3 to 10.4 12.6 to 14.1	4.7	1.5 to 2.3	8.8 to 9.3	5.5	1.5 to 2.6

Post-tax discount

rate

Annual growth rate for revenue during the plan period

2023

Growth rate for the period after the

plan

6.9 to 10.9 6.3 2.5

8.6 to 8.8 10.1 3.3

to 9.1 10.1 3.0
to 9.1 10.4 3.0
9.0 to 9.5 8.4 2.5
to 9.3 3.5 2.0

Plans generally cover a five-year period, but may be prolonged up to ten years in the case of brands for which the production cycle exceeds five years or brands undergoing strategic repositioning.

Annual growth rates applied for the period not covered by the plans are based on market estimates for the business groups concerned.

As of December 31, 2025, the intangible assets with indefinite useful lives that are the most significant in terms of their carrying amounts and the criteria used for impairment testing are as follows:

(EUR millions) Brands and

trade names

Goodwill Total Post-tax discount rate

(as %)

Growth rate for the period after the plan

(as %)

Period covered by the forecast

cash flows

Christian Dior 3,500 2,253 5,753 8.3 2.2 5 years

Louis Vuitton 2,060 535 2,595 8.3 2.2 5 years

Loro Piana 1,300 1,058 2,358 8.3 2.2 5 years

Fendi 713 417 1,130 8.3 2.2 5 years

Tiffany (a) 6,213 7,384 13,597 8.3 2.5 10 years

Bvlgari 2,100 1,547 3,647 8.7 2.2 5 years

TAG Heuer (a) 1,332 202 1,534 8.7 2.8 10 years

Sephora 265 706 971 9.3 2.0 5 years

Belmond (a) 126 763 889 9.3 1.5 10 years

(a) These Maisons are considered to be undergoing strategic repositioning, based on a ten-year business plan.

‌As of December 31, 2025, two of these Maisons disclosed intangible assets with a carrying amount close to their recoverable amount. Impairment tests relating to intangible assets with indefinite useful lives in these Maisons have been carried out based on value in use. The amount of these intangible assets as of December 31, 2025 and the impairment loss that would result

from a 1-point increase in the post-tax discount rate, a 0.5-point decrease in the growth rate for the period not covered by the plans, or a 50% decrease in the annual growth rate for revenue compared to rates used as of December 31, 2025, break down as follows:

(EUR millions) Amount of

intangible assets

Amount of impairment if:

concerned as of Dec. 31, 2025

Post-tax discount rate increases

by 1 point

Annual growth rate for revenue

decreases by 50%

Growth rate for the period after the plan decreases by

0.5 points

Watches and Jewelry (a) 15,131 (1,667) (2,936) (96)

Total 15,131 (1,667) (2,936) (96)

(a) Concerns Tiffany and TAG Heuer.

The Group considers that changes in excess of those mentioned above would entail assumptions at a level not deemed relevant in view of the current economic environment and medium- to long-term growth prospects for the business segments concerned. Moreover, a 50% year-on-year decrease in the annual growth rate for revenue applied during the plan period is a pessimistic assumption with a very low probability of occurrence.

As of December 31, 2025, the gross values and carrying amounts of brands, trade names and goodwill giving rise to amortization and/or impairment charges in 2025 were 2,294 million euros and 2,022 million euros, respectively (588 million euros and 287 million euros as of December 31, 2024).

Impairment and amortization expenses recognized during fiscal year 2025 in respect of intangible assets with indefinite useful lives amounted to a net expense of 135 million euros. See Note 26.

PROPERTY, PLANT AND EQUIPMENT

(EUR millions)	2025			2024 2023
	Gross	Depreciation and impairment	Net	Net Net
Land	8,252	(24)	8,228	8,527 7,950
Vineyard land and producing vineyards (a)	3,171	(144)	3,027	3,038 2,948
Buildings	8,778	(3,202)	5,575	5,586 5,263
Investment property	374	(58)	316	319 316
Leasehold improvements,
machinery and equipment	23,709	(15,611)	8,098	7,728 6,653
Assets in progress	2,098	(12)	2,086	2,320 2,080
Other property, plant and equipment	3,057	(659)	2,398	2,368 2,121
Total	49,439	(19,711)	29,728	29,886 27,331
O/ which: Historical cost o/ vineyard land	1,011	-	1,011	1,030 924

(a) Almost all of the carrying amount of "Vineyard land and producing vineyards" corresponds to vineyard land.

Changes in property, plant and equipment during the fiscal year broke down as follows:

Gross value

(EUR millions)

Vineyard land and producing

Land and buildings

Investment property

Leasehold improvements, machinery and equipment

Assets in progress

Other property, plant and

Total

vineyards

Stores and Production, Other

equipment

hospitality

sites

logistics

As of December 31, 2024 3,179 17,555 375 16,135 4,759 2,577 2,394 2,993 49,967

Acquisitions 7 361 5 1,018 197 163 2,023 77 3,851

Change in the market

value of vineyard land 21 - - - - - - - 21

Disposals and retirements (8) (200) - (712) (98) (133) (9) (43) (1,202)

Changes in the scope

of consolidation - (23) - (3) 1 - - - (25)

Translation adjustment (46) (572) (10) (1,192) (102) (118) (109) (71) (2,220)

Other movements,

including transfers (a) 18 (91) 4 1,171 164 (119) (2,201) 100 (954)

As of December 31, 2025 3,171 17,030 374 16,418 4,921 2,371 2,098 3,057 49,439

Depreciation and impairment (EUR millions)

Vineyard land and producing

Land and buildings

Investment property

Leasehold improvements, machinery and equipment

Assets in progress

Other property, plant and

Total

vineyards

Stores and Production, Other

equipment

hospitality

sites

logistics

As of December 31, 2024 (141) (3,441) (56) (10,934) (3,183) (1,626) (74) (626) (20,081)

Depreciation expense (9) (369) (4) (1,683) (318) (226) - (93) (2,703)

Impairment expense - (32) - 12 (3) 4 17 - (3)

Disposals and retirements 3 156 - 708 93 136 1 42 1,138 Changes in the scope

of consolidation - 4 - 2 (1) - - - 6

Translation adjustment 3 133 1 778 60 86 3 17 1,081 Other movements,

including transfers (a) - 323 - 301 (5) 190 42 1 852

As of December 31, 2025 (144) (3,227) (58) (10,817) (3,358) (1,436) (12) (659) (19,711)

Carrying amount as of

December 31, 2025 3,027 13,803 316 5,601 1,563 935 2,086 2,398 29,728

(a) The amounts presented in "Other movements, including transfers" mainly comprise DFS assets reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

"Other property, plant and equipment" included in particular the works of art owned by the Group.

As of December 31, 2025, purchases of property, plant and equipment mainly included investments by the Group's Maisons - notably Louis Vuitton, Christian Dior Couture, Tiffany and Sephora - in their retail networks. They also included investments by Parfums Christian Dior and the champagne houses in their production equipment, as well as investments relating to the Group's hospitality activities.

Translation adjustments on property, plant and equipment mainly related to fixed assets recognized in US dollars, Chinese renminbi and pounds sterling, based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and December 31, 2025.

The market value of investment property, according to appraisals by independent third parties, was at least 0.5 billion euros as of December 31, 2025. The valuation methods used are based on market data.

Changes in property, plant and equipment during prior fiscal years broke down as follows:

Carrying amount

(EUR millions)

Vineyard land and producing

Land and buildings

Investment property

Leasehold improvements, machinery and equipment

Assets in progress

Other property, plant and

Total

vineyards

Stores and Production, Other

equipment

hospitality

sites

logistics

As of December 31, 2022 2,729 10,334 434 3,853 1,263 657 1,809 1,977 23,055

Acquisitions 83 2,553 2 1,163 218 182 2,449 176 6,824

Disposals and retirements (12) (4) (110) (3) (3) (3) (6) 4 (136)

Depreciation expense (9) (331) (6) (1,335) (264) (194) - (71) (2,209)

Impairment expense (1) (6) - (5) (2) - (45) (1) (60)

Change in the market

value of vineyard land 53 - - - - - - - 53

Changes in the scope

of consolidation 84 66 - (6) 14 1 1 - 161

Translation adjustment (12) (133) (3) (139) (8) (10) (38) (12) (356) Other movements,

including transfers 33 734 (2) 1,030 127 119 (2,090) 48 (1)

As of December 31, 2023 2,948 13,213 316 4,556 1,346 750 2,080 2,121 27,331

Acquisitions 28 646 2 1,210 230 175 2,169 256 4,716

Disposals and retirements (6) (5) - (3) (3) - (2) (1) (21)

Depreciation expense (9) (399) (4) (1,537) (291) (225) - (84) (2,549)

Impairment expense - (2) - (80) (1) (6) (29) 1 (117)

Change in the market

value of vineyard land 23 - - - - - - - 23

Changes in the scope

of consolidation - 17 - 1 19 1 43 - 82

Translation adjustment 33 172 5 123 36 11 36 25 441

Other movements,

including transfers 19 471 1 932 239 245 (1,978) 50 (21)

As of December 31, 2024 3,038 14,114 319 5,201 1,576 951 2,320 2,368 29,886

In 2024, purchases of property, plant and equipment mainly included investments by the Group's Maisons - notably Louis Vuitton, Christian Dior, Tiffany and Sephora - in their retail networks. They also included investments by the champagne houses, Hennessy and Parfums Christian Dior in their production equipment, as well as investments relating to the Group's hospitality activities. In addition, buildings were acquired in Tokyo and Paris by the Group's holding companies and Maisons, mainly in order to operate stores in them.

In 2023, purchases of property, plant and equipment mainly included investments by the Group's Maisons - notably Louis Vuitton, Christian Dior, Tiffany and Sephora - in their retail networks. They also included investments by the champagne houses, Hennessy and Louis Vuitton in their production equipment, as well as investments relating to the Group's hospitality activities. In addition, buildings were acquired in Paris and London by the Group's holding companies and Maisons, mainly in order to operate stores in them. At the end of April 2023, Tiffany's iconic store on Fifth Avenue in New York reopened after several years of renovation.

‌LEASES

Right-of-use assets

Right-of-use assets break down as follows, by type of underlying asset:

(EUR millions)

Stores Offices Other

2025

2024 2023

Gross

20,413

3,740

1,468

Depreciation and

impairment

(8,970)

(1,524)

(522)

Net

11,444

2,215

946

Net Net

12,984 12,206

2,300 2,253

1,043 896

Capitalized fixed lease payments

Leasehold rights

25,621

904

(11,016)

(648)

14,605

255

16,327 15,355

292 323

Total

26,524

(11,664)

14,860

16,620 15,679

The carrying amounts of right-of-use assets changed as follows during the fiscal year:

(EUR millions) Capitalized fixed lease payments Leasehold

	Stores	Offices	Other	Total
As of December 31, 2024	12,984	2,300	1,043	16,327	292	16,620
New leases entered into	2,351	343	288	2,982	12	2,994
Changes in assumptions	387	82	31	500	-	500
Leases ended or canceled	(60)	(12)	(13)	(84)	2	(82)
Depreciation expense	(2,555)	(390)	(167)	(3,113)	(56)	(3,169)
Impairment expense	38	2	(18)	22	4	26
Changes in the scope of consolidation	-	-	-	-	-	-
Translation adjustment	(925)	(107)	(74)	(1,107)	(4)	(1,110)
Other movements, including transfers (a)	(776)	(2)	(145)	(923)	5	(918)
As of December 31, 2025	11,444	2,215	946	14,605	255	14,860

rights

Total

(a) The amounts presented in "Other movements, including transfers" mainly comprise DFS right-of-use assets reclassified under "Assets held for sale" as of December 31, 2025 (see Note 2).

"New leases entered into" involved store leases, in particular for Louis Vuitton, Christian Dior Couture, Celine, Tiffany and Loewe. They also included leases of office space, mainly for Louis Vuitton and Tiffany. Changes in assumptions mainly resulted from adjustments to estimated lease terms. These two types of changes led to corresponding increases in right-of-use assets and lease liabilities.

Lease liabilities

Lease liabilities break down as follows:

Translation adjustments mainly related to leases recognized in US dollars, Japanese yen and Hong Kong dollars, based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and December 31, 2025.

(EUR millions)

Non-current lease liabilities Current lease liabilities

2025

13,384

2,634

2024 2023

14,860 13,810

2,972 2,728

Total

16,018

17,832 16,538

The change in lease liabilities during the fiscal year breaks down as follows:

(EUR millions)	Stores	Offices	Other	Total
As of December 31, 2024	14,099	2,633	1,101	17,832
New leases entered into	2,315	339	280	2,934
Principal repayments	(2,441)	(355)	(143)	(2,938)
Change in accrued interest	4	3	1	7
Leases ended or canceled	(78)	(14)	(12)	(105)
Changes in assumptions	408	81	31	520
Changes in the scope of consolidation	-	-	-	-
Translation adjustment	(1,025)	(125)	(85)	(1,235)
Other movements, including transfers (a)	(830)	(4)	(164)	(998)
As of December 31, 2025	12,452	2,558	1,009	16,018

(a) The amounts presented in "Other movements, including transfers" mainly comprise DFS lease liabilities reclassified under "Liabilities held for sale" as of December 31, 2025 (see Note 2).

The following table presents the contractual schedule of disbursements for lease liabilities as of December 31, 2025:

(EUR millions)		As of December 31, 2025
		Total minimum future payments
Maturity:	2026	2,990
	2027	2,702
	2028	2,295
	2029	1,974
	2030	1,635
	Between 2031 and 2035	4,847
	Between 2036 and 2040	1,041
	Thereafter	680
Total minimum future payments		18,163
Impact of discounting		(2,145)
Total lease liability		16,018

Breakdown of lease expense

The lease expense for the fiscal year breaks down as follows:

(EUR millions)	2025	2024 2023
Depreciation and impairment of capitalized fixed lease payments	3,091	3,168 2,980
Interest on lease liabilities	553	510 393
Capitalized fixed lease expense	3,644	3,678 3,373
Variable lease payments	2,184	2,509 2,788
Short-term leases and/or low-value leases	644	582 548
Other lease expenses	2,828	3,091 3,336
Total	6,471	6,769 6,710

In certain countries, leases for stores entail the payment of both minimum amounts and variable amounts, especially for stores with lease payments indexed to revenue. As required by IFRS 16,

only the minimum fixed lease payments are capitalized. "Other lease expenses" mainly relate to variable lease payments.

For leases not required to be capitalized, there is little difference between the expense recognized and the payments made.

Changes during prior fiscal years

The change in right-of-use assets during the previous fiscal years breaks down as follows, by type of underlying asset:

Carrying amount

	Stores	Offices	Other	Total
As of December 31, 2022	11,202	3,273	856	14,332	283	14,615
New leases entered into	2,900	621	164	3,686	78	3,763
Changes in assumptions	753	45	40	838	-	838
Leases ended or canceled	(99)	(2)	-	(100)	-	(101)
Depreciation expense	(2,477)	(377)	(137)	(2,991)	(55)	(3,046)
Impairment expense	4	7	-	11	4	15
Changes in the scope of consolidation	-	(7)	(2)	(9)	-	(9)
Translation adjustment	(335)	(40)	(23)	(398)	-	(399)
Other movements, including transfers	259	(268)	(3)	(12)	14	2
As of December 31, 2023	12,206	2,253	896	15,355	323	15,679
New leases entered into	2,346	282	275	2,903	28	2,931
Changes in assumptions	698	104	34	837	-	837
Leases ended or canceled	(19)	(1)	(7)	(26)	(3)	(29)
Depreciation expense	(2,587)	(383)	(160)	(3,130)	(56)	(3,186)
Impairment expense	(47)	13	(5)	(38)	(4)	(42)
Changes in the scope of consolidation	-	(1)	8	7	-	7
Translation adjustment	358	37	18	413	2	414
Other movements, including transfers	27	(4)	(17)	7	1	8
As of December 31, 2024	12,984	2,300	1,043	16,327	292	16,620

(EUR millions)

Capitalized fixed lease payments Leasehold

rights

Total

The change in lease liabilities during the previous fiscal years breaks down as follows:

(EUR millions)	Stores	Offices	Other	Total
As of December 31, 2022	12,024	2,530	854	15,408
New leases entered into	2,861	602	163	3,626
Principal repayments	(2,338)	(320)	(118)	(2,777)
Change in accrued interest	27	8	2	37
Leases ended or canceled	(142)	(5)	(1)	(147)
Changes in assumptions	750	46	40	835
Changes in the scope of consolidation	(1)	(9)	(2)	(11)
Translation adjustment	(352)	(44)	(24)	(420)
Other movements, including transfers	254	(262)	(4)	(12)
As of December 31, 2023	13,083	2,546	910	16,538
New leases entered into	2,321	272	275	2,868
Principal repayments	(2,401)	(335)	(139)	(2,875)
Change in accrued interest	17	6	3	26
Leases ended or canceled	(21)	(2)	(8)	(32)
Changes in assumptions	686	104	33	824
Changes in the scope of consolidation	-	(1)	11	11
Translation adjustment	408	45	22	475
Other movements, including transfers	5	(3)	(6)	(4)
As of December 31, 2024	14,099	2,633	1,101	17,832

Off-balance sheet commitments

Off-balance sheet commitments relating to leases with fixed lease payments break down as follows:

(EUR millions)

Contracts commencing after the balance sheet date Low-value leases and short-term leases

2025

315

334

2024 2023

725 888

293 286

Total undiscounted future payments

649

1,018 1,174

As part of the active management of its retail network, the Group negotiates and enters into leases with commencement dates after the balance sheet date. Obligations to make payments under these leases are reported as off-balance sheet commitments rather than being recognized as lease liabilities.

Discount rates

In addition, the Group may enter into leases or concession contracts that have variable guaranteed amounts, which are not reflected in the commitments above.

The average discount rate for lease liabilities breaks down as follows for leases in effect as of December 31, 2025:

(as %)	Average rate for leases in effect as of December 31, 2025	Average rate for leases entered into in 2025
Euro	2.4	3.2
US dollar	4.1	4.8
Japanese yen	1.0	1.6
Hong Kong dollar	3.7	3.6
Other currencies	3.6	3.8
Average rate for the Group	3.2	3.5

Termination and renewal options

The term used to calculate the lease liability is generally the contractual term of the lease. Special cases may exist where an early termination option or a renewal option is reasonably certain

to be exercised, and as such the lease term used to calculate the lease liability is reduced or extended, respectively.

The table below presents the impact of these assumptions on lease liabilities recognized as of December 31, 2025:

(EUR millions) As of December 31, 2025

Lease liabilities

Impact of early

Of which: Impact of options not taken into account(a)

Impact of

Lease liabilities related to contracts:		termination options	renewal options	Renewal options	Early termination options
- with options	6,119	(141)	1,352	1,676	(801)
- without options	9,899
Total	16,018	(141)	1,352	1,676	(801)

(a) The impact of options not taken into account presented in the table above was calculated by discounting future lease payments on the basis of the last known contractual term.

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LVMH - Moët Hennessy Louis Vuitton SE published this content on February 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 12, 2026 at 13:46 UTC.

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Mar. 02	Strikes in Iran: European Markets Plunge as Energy and Defense Surge
Feb. 27	LVMH shut down in Russia when the war started. But it kept a storied hotel that serves sanctioned clients	RE
Feb. 25	The Arnault Family Increases Stake in LVMH, Surpassing the 50% Threshold
Feb. 25	Diageo CEO: Surveys suggest impact of GLP-1s on spirits is really rather small	RE

Chart LVMH

Duration

Period

MC: Dynamic Chart

Company Profile

LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows: - fashion and leather items (46.7%): brands such as Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, etc.; - watches and jewels (13%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.; - perfumes and cosmetics products (10.1%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, Givenchy brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.; - wines and spirits (6.6%): champagnes (Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.; The remaining net sales (23.6%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores. At the end of 2025, products are marketed via a network of 6,283 outlets located throughout the world. Net sales are distributed geographically as follows: France (8.3%), Europe (18%), Japan (7.9%), Asia (26.5%), the United States (25.6%) and other (13.7%).

Employees

196,647

Sector

Apparel & Accessories

Calendar

Apr. 28 - Ex-dividend date - 7.5 EUR

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