LVMH $MC.PA is again below €500
The company of billionaire Bernard Arnault is trading 47% below its 2023 high.
The decline is due to a combination of factors. LVMH reported 2025 revenue of €80.8 billion, a 5% year-on-year decrease. The key Fashion & Leather Goods division, which includes brands like Louis Vuitton and Dior, recorded an organic 5% drop in revenue and operating profit fell by 13%. The group's net profit plunged 13% to €10.9 billion.
Demand in Asia remains weak. This is compounded by consumer fatigue from repeated price increases and a shift of younger customers toward brands like Prada or Miu Miu.
The positive news is growth in selective distribution thanks to Sephora and stabilization in the watches and jewelry segment.
CEO Arnault, however, warned that 2026 will be challenging.
Do you hold shares of this fashion giant in your portfolio, or is it a no-go for you?
I’m still holding a position in my portfolio, but I’m leaving it alone and not worrying about it anymore. The situation in France isn’t great, and that doesn’t help these companies either.
I recently opened a small position. From a long-term perspective, it makes sense to me.
In recent years this sector hasn't done well at all, and there are many reasons for that. I had considered buying $RMS.PA, but fortunately I didn't.