The 2025 financial results of LVMH reveal a clear contrast within the group’s vast luxury empire.
While overall performance remained relatively stable, the wines and spirits division faced notable headwinds, posting a 5% organic revenue decline and a 25% drop in recurring operating profit. Total sales for the segment reached €5.358 billion, down from €5.862 billion the previous year.
The uneven performance across quarters highlights the volatility of the current market. A slight rebound in the third quarter, with revenues rising 1% year-on-year to €1.33 billion, was not enough to offset the sharp contraction seen in the final months of the year. Fourth-quarter sales fell by 9%, sealing a difficult annual outcome for the division.
Hennessy Cognac once again emerged as the focal point of the decline. According to LVMH, lower domestic demand—particularly in China and the United States—significantly impacted the brand’s performance. These markets are critical for cognac, and both have been affected by ongoing customs tariffs and broader trade tensions.
Although the closure of China’s anti-dumping investigation into EU brandy imports in mid-2024 provided a short-term boost for European producers, structural challenges persist. Shifts in consumer behavior, price sensitivity, and geopolitical uncertainty continue to weigh heavily on high-end spirits, even within the luxury segment.
In contrast, LVMH’s Champagne maisons demonstrated remarkable resilience, retaining a 22% share of global Champagne shipments. Meanwhile, the group’s Provençal rosé wines exceeded international category performance, signaling that lighter, lifestyle-oriented wine styles remain in demand despite broader market pressures.
Looking ahead, LVMH is doubling down on brand visibility and experiential luxury. Bernard Arnault highlighted the group’s strategic partnership with Formula 1 as a key initiative to strengthen international brand presence. Several spirits brands are already embedded in this collaboration: Volcán De Mi Tierra serves as the official tequila of Formula 1, Glenmorangie represents whisky, and Belvedere holds the vodka designation.
According to Arnault, these partnerships create new touchpoints with consumers seeking exclusivity, prestige, and immersive experiences—values closely aligned with both luxury and motorsport. Combined with rigorous cost control and strong ESG commitments, LVMH aims to navigate the current downturn while positioning its wines and spirits portfolio for long-term recovery and growth.
Source: Vinetur
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