LVMH Q4 Earnings Beat Expectations on China Revival
By Reuters | 27 Jan, 2026

Chinese customers account for nearly a third of LVMH fashion and leather sales which make up the bulk of its revenues.

LVMH, the owner of Louis Vuitton and Tiffany, sold more goods than analysts expected in the fourth quarter, boosting hopes of a luxury sector rebound even as trade tensions, a weaker dollar and high gold prices hit its margins.

Total quarterly sales at the world's largest luxury group came in at 22.7 billion euros ($27.1 billion), up 1% on a like-for-like basis versus expectations of a 0.3% decline in a consensus forecast compiled by Visible Alpha. 

The key fashion and leather division, which accounts for the bulk of profits, saw revenues fall by 3% when adjusted for currency swings, in line with expectations.

The French group reported signs of a return to growth in Asia, with domestic Chinese sales rising in the quarter, confirming a recovery it has flagged for several months.

PRESSURE ON MARGINS  

The update will likely lift investor hopes that the sector is recovering this year from a protracted downturn, even though LVMH's 2025 operating profit fell by 9%.

The group's margins were dragged down by a range of factors, including currency moves - accounting for just over half of the decline - as well as U.S. tariffs hitting alcohol exports and record gold price, which lifted import costs for jewellery. 

Amid a property crisis and strong local competition in China, LVMH has sought to use its financial heft to gain momentum, opening a giant ship-shaped Vuitton store in Shanghai and a new Dior flagship store in Beijing, among other moves. 

"The Chinese consumer faces a whole ton of headwinds, and that's one of the big data points we'll be looking for this quarter," Berenberg analyst Nick Anderson said. 

Chinese shoppers, including its tourists abroad, account for almost a third of LVMH's fashion and leather sales, UBS estimates, and investors are attuned to any sign of improvement.

At its last trading update, LVMH's comments about slightly better Chinese demand stoked a luxury stock market rally that added nearly $80 billion to combined company valuations.

LVMH said the weaker dollar led to U.S. tourists spending less in Europe, with regional sales down 2% last quarter, while U.S. sales increased by 1% in the same period. Sales in Asia, including China, rose 1%. 

($1 = 0.8365 euros)

(Reporting by Tassilo Hummel. Editing by Mark Potter)