Published
January 29, 2026
Unspoken questions hung in the air in the auditorium at 22 Avenue Montaigne on Tuesday evening, as the French group LVMH presented its annual results for 2025. As is his habit, the chairman and CEO of the world’s number one luxury goods group, Bernard Arnault, 76, stood before an audience of group executives (including most of his children), financial analysts, and business journalists. But while the press and analysts had for several days been highlighting the lack of clarity surrounding the group’s succession plan, the topic went unmentioned at this conference.
Bernard Arnault, January 27, 2026 – FNW/OG
In his remarks, Bernard Arnault focused on “the group’s solid results in a difficult economic climate.” He cited revenue of over €80 billion, noting that it is “more than twice what it was 10 years ago,” as well as “slightly negative organic growth for the year, but positive in the second half.”
Those hoping for a statement on the future of the group’s governance were disappointed: the CEO confined himself to a few oblique references to recent analyst commentary. And while in previous years the chairman had taken a few questions from the press at the end of the conference, the patriarch, accompanied by his eldest son, Antoine, quickly slipped away without a word.
The results presentation, at which Bernard Arnault was accompanied for the first time by Stéphane Bianchi, deputy CEO, and Cécile Cabanis, chief financial officer, did, however, yield a number of insights.
More than ever, Bernard Arnault put the spotlight on Louis Vuitton and Dior. Before praising Pharrell Williams for his “particularly wearable clothing, which is always desirable,” he singled out Jonathan Anderson. “The event of the week was the Dior Haute Couture show. Everyone was wondering how it was going to go because we have a great new designer. And it was absolutely fantastic,” said the chairman, in effect laying to rest an awkward issue that had lingered for more than a decade. “I think even John Galliano, who was the former designer of the house, whom we had invited and who, at the time, was also very successful, was particularly moved and happy to see such a successor from a distance.”
While the British artistic director left Maison Margiela last year, such a gesture of esteem from Bernard Arnault, after the dramatic rupture of 2011, could be interpreted as a form of rehabilitation for the designer. It certainly raises questions… all the more so as LVMH remains the owner of the John Galliano brand.
But Bernard Arnault reserved his highest praise for Dior’s current designer: “It’s the first time since Christian Dior that we have a designer who makes the entire range of products, and I want to say that these products are very much in demand at the start of this year.”
For her part, Cécile Cabanis noted that Dior, like Louis Vuitton, experienced, within the Fashion and Leather Goods division’s performance, “sequential quarter-on-quarter improvement in 2025.”
Louis Vuitton, whose giant concept The Boat in Shanghai is reportedly attracting 100,000 visitors a week, remains the driving force behind the Fashion and Leather Goods division, and is still preparing its future flagship on the Champs-Élysées. And Dior, which this weekend is inaugurating an exclusive pop-up space at Le Bon Marché, is developing its House of Dior concept, after two sites in the US and a recent opening in Beijing. This is the most visible part of the group’s retail activity, as LVMH has, as in many other areas, adopted a radical approach in 2025.
The group closed more than 1,500 stores worldwide last year, across all its brands, representing almost 10% of its network, which still numbered 11,444 points of sale as of December 31.
An experiential venue: Louis Vuitton’s The Boat concept in Shanghai – Louis Vuitton
It was a complex year for the fashion and leather goods segment, which remains the group’s mainstay. Revenue fell from €41.06 billion to €37.77 billion. Above all, although its operating margin remained healthy at 35%, performance was affected by unfavourable exchange rates and lower sales. Two years ago, the margin was 39.9%. And while Bernard Arnault repeatedly praised the impact of “management efforts made both to develop business and to keep costs down,” the fashion and leather goods division recorded a decline of over €2 billion in operating profit, to €13.2 billion. This inevitably raises questions about the performance of the group’s other brands, beyond its two crown jewels.
The group has, however, invested nearly €1 billion to further strengthen its stake in Loro Piana. Referring to the agreement with the family, Bernard Arnault made an intriguing overture. “When we bought this company, we paid around two billion. And today, it’s worth about 10. Do you see the ratio? Well… I’m saying this so you can perhaps pass it on to others. When you partner with us, first, the companies do very well. And second, for shareholders- families in particular- they do very well.”
Was this a message to Richemont owner Johann Rupert? The LVMH boss had already given the South African a nod a year and a half ago, when he revealed that he had taken a minority stake in Cartier‘s parent company. And then, of course, there’s the Armani file. Emperor Giorgio, who died a few months ago, had mentioned LVMH in his will as a player (along with L’Oréal and Luxottica) who could take over the activities of his group, now in family hands.
Loro Piana is due to open in 2026 in Vienna and on Omotesando, in Japan. For the group’s other houses, LVMH awaits the effects of the arrival of new artistic directors, including Michael Rider at Celine and Maria Grazia Chiuri, who moved from Dior to Fendi and will return to Haute Couture in July. The duo Jack McCollough and Lazaro Hernandez at Loewe appears to have the group’s confidence: the brand of Spanish origin will open three new flagships, on Via Monte Napoleone in Milan, Rue du Faubourg Saint-Honoré in Paris, and Madison Avenue in New York.
What else did the presentation reveal? The CEO confirmed the group’s intention to divest its DFS business, having sold the largest share in January. What remains today is a network mainly in Japan and North America. According to Bernard Arnault, the transformation of La Samaritaine (previously overseen by DFS), led by the teams of Patrice Wagner, the head of Le Bon Marché, is “well under way.”
Sephora still has potential, says LVMH CEO – Sephora
Still within the selective retailing segment, Sephora is reportedly enjoying record growth and profitability. “There’s still much to do,” said the CEO regarding Sephora, for which the group does not disclose revenue, noting that “what’s very interesting is that we cover only a very small part of the world.”
In the watches and jewellery segment, the Group aims to position Tiffany & Co. as the world’s number one in its sector within five to ten years, while Stéphane Bianchi noted that the fine jewellery business has tripled in four years, while the share of silver products has fallen by more than 33% since the takeover. New store concepts accounted for around a third of the total number of stores at the end of 2025 and around 42% of sales, compared with 31% the previous year.
Looking ahead to 2026, Bernard Arnault was very cautious. “I always say that in our business, I’m optimistic in the medium term. But in the short term, it’s very difficult to make a serious forecast,” he said. “It is very difficult to be able to control the entirety of the geo-economic impacts on our businesses.”
One major point remains: despite a contraction in its operations and profitability, the group has cash flow of €11.3 billion, without detailing the projects that could draw on these resources. A windfall that necessarily keeps acquisition opportunities open. Could LVMH be on the offensive in 2026?
What is certain, however, is that Bernard Arnault, still at the helm, is working to secure the family’s position. “We’re going to pass the 50% mark early this year. So we’ll have more than 50% of the capital. You see, we believe in what we’re doing. And this is one of the ways we’re showing it.” Showing, incidentally, if any reminder were needed, who is at the helm.
Copyright © 2026 FashionNetwork.com All rights reserved.