Finance
LVMH drives luxury stocks down after results disappoint
Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Quick Summary
LVMH shares are expected to decline by 3-4% after Q4 results showed weaker margins and a cautious economic outlook, despite growth in China.
LVMH drives luxury stocks down after results disappoint
Impact of LVMH's Q4 Results on Luxury Market
PARIS, Jan 28 (Reuters) - LVMH shares fell 7% on Wednesday following its fourth-quarter results announcement, with the market disappointed at the luxury group's weaker margins and cautious tone on the initial signs of a recovery in demand.
Sales Growth in China
LVMH, the world's biggest luxury conglomerate with brands from Louis Vuitton to Tiffany and Moet & Chandon champagne, is a bellwether for the industry, and the move also dragged down shares in Gucci owner Kering, Moncler and Hermes by between 2% and 5%.
Concerns Over Wine and Spirits Revenue
The French group said sales in the key Chinese market grew in the quarter, but the results were less encouraging than expected in the wake of more upbeat comments on China from Richemont and Burberry earlier this month.
CEO's Cost Management Strategy
Analysts also said a sharp revenue decline at LVMH's wine and spirits group was a concern, even though the business accounts for only a small share of its overall sales.
CEO Bernard Arnault told a press conference following the results release on Tuesday that LVMH would continue to limit its costs this year, underlining that geopolitical crises and economic uncertainty were reasons to be cautious.
A combination of U.S. tariffs, a weak dollar, and slowing demand has weighed on the group's profit margins, and finance boss Cecile Cabanis said further sales growth will be needed for margins to rebound.
"We need growth, so we are going to focus on getting growth going again, and continuing to manage our costs," she said at the press conference.
(Reporting by Helen Reid; Editing by Louise Heavens and Joe Bavier)
Key Takeaways
- •LVMH shares anticipated to drop 3-4% post-Q4 results.
- •Weaker margins and cautious outlook disappoint market.
- •Domestic Chinese sales show growth but below expectations.
- •CEO Bernard Arnault cites geopolitical and economic concerns.
- •Comparison with peers Richemont and Burberry's performance.
Frequently Asked Questions about LVMH drives luxury stocks down after results disappoint
1What is a corporate profit?
Corporate profit refers to the amount of money a company earns after all expenses, taxes, and costs have been deducted from total revenue.
2What is economic growth?
Economic growth is the increase in the production of goods and services in an economy over a specific period, typically measured by GDP.
3What is a fourth-quarter result?
A fourth-quarter result refers to the financial performance of a company during the last quarter of its fiscal year, often indicating annual performance.
