2025 was not a good year for LVMH

Hindered by unfavorable economic, geopolitical, and customs conditions in France and around the world, as well as by an exceptional surtax on profits, the luxury goods leader posted declines in both sales and net income last year.

Usually rather impassive, Bernard Arnault, CEO of LVMH, showed some discontent when announcing his group’s 2025 results.

The world’s leading luxury goods company ended the year with lower performance, which was not a cause for celebration for its CEO.

Plunge in net profit

The most dramatic decline was in net profit, which plunged 13% to €10.9 billion last year. This was due in particular to the exceptional surtax on profits imposed on large companies in France. This increased LVMH’s tax rate by 4 points, according to the group, which last year estimated the amount to be between €700 million and €800 million.

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