Q4 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call

January 27, 2026

Speaker #1: Euh, monsieur, bonsoir. Je suis

Operator: Messieurs, bonsoir. Je suis ravi de pouvoir...

Bernard Arnault: Messieurs, bonsoir. Je suis ravi de pouvoir...

Speaker #1: ravi de pouvoir. Good

Speaker #2: Evening. I'm delighted to present to you the figures for 2025 to begin with. Good piece of news. I think we'll make it through the

Bernard Arnault: Good evening. I'm delighted to present to you the figures for 2025. To begin with, a good piece of news. I think we'll make it through the winter. Some commentators had concerns, especially some journalists. I believe we can say more seriously that the results of the group are solid in a rather challenging, disrupted climate, economically, from the geopolitical standpoint. But we've managed to get through this period. 2026 won't be simple either, but one thing at a time. Revenue just over EUR 80 billion. Let's state that it's twice what it was 10 years ago. Organic growth slightly negative on the year, but positive in the second half. CFO will tell you more about the figures. Operating margin of 22%, way above the average of the last 20 years. Negative foreign exchange impact, an impact that I don't think is going to improve this year for various reasons.

[Translator]: Good evening. I'm delighted to present to you the figures for 2025. To begin with, a good piece of news. I think we'll make it through the winter. Some commentators had concerns, especially some journalists. I believe we can say more seriously that the results of the group are solid in a rather challenging, disrupted climate, economically, from the geopolitical standpoint. But we've managed to get through this period. 2026 won't be simple either, but one thing at a time. Revenue just over EUR 80 billion. Let's state that it's twice what it was 10 years ago. Organic growth slightly negative on the year, but positive in the second half. CFO will tell you more about the figures. Operating margin of 22%, way above the average of the last 20 years. Negative foreign exchange impact, an impact that I don't think is going to improve this year for various reasons.

Speaker #2: winter. Certains Some.

Speaker #1: Commentaires avaient des... de nos inquiétudes.

Speaker #1: Surtout. Euh.

Speaker #2: Commentators had concerns—especially some journalists. I believe we can say more seriously that the results of the group are solid. In a

Speaker #1: Difficile.

Speaker #2: Rather challenging, disrupted climate economically from the geopolitical standpoint. But we've managed to get through this period. 2026 won't be simple either, but one thing at a time.

Q4 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call

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LVMH Moet Hennessy Louis Vuitton SE

Earnings

Q4 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call

LVMUY

Tuesday, January 27th, 2026 at 5:00 PM

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Speaker #2: So, revenue just over $80 billion. Let's state that it's twice what it was 10 years ago. Organic growth slightly negative on the year, but positive in the second half.

Speaker #2: The CFO will tell you more about the figures. Operating margin of 22%, way above the average of the last 20 years. A negative foreign exchange impact—an impact that I don't think is going to improve this year for various reasons.

Speaker #2: And the economic context—that is, changing swiftly, disrupted sometimes, unforeseeable. And in spite of that, through management efforts—and I'd like to thank the executive committee that is with us here this evening for the efforts undertaken both in order to expand the business and to contain costs—because, and this is a metric that is key for us: cash flow is up.

Bernard Arnault: The economic context that is changing swiftly, disrupted, sometimes unforeseeable. In spite of that, through management efforts, and I'd like to thank the executive committee that is with us here this evening for the efforts undertaken, both in order to expand the business and to contain costs, because this is a metric that is key for us. Cash flow is up. In spite of everything that is thrown at us, including the taxes that were said to disappear, but unfortunately won't disappear, we can return to that if the questions. But operating free cash flow reaches EUR 11.3 billion. You'll see looking in greater detail the figures that we have an improvement in the trend across our activities, and this is maintained by the strong desirability of our brands. Numerous initiatives taken across our businesses.

The economic context that is changing swiftly, disrupted, sometimes unforeseeable. In spite of that, through management efforts, and I'd like to thank the executive committee that is with us here this evening for the efforts undertaken, both in order to expand the business and to contain costs, because this is a metric that is key for us. Cash flow is up. In spite of everything that is thrown at us, including the taxes that were said to disappear, but unfortunately won't disappear, we can return to that if the questions. But operating free cash flow reaches EUR 11.3 billion. You'll see looking in greater detail the figures that we have an improvement in the trend across our activities, and this is maintained by the strong desirability of our brands. Numerous initiatives taken across our businesses.

Speaker #2: And in spite of everything that is thrown at us, including the taxes that were said to disappear but unfortunately won't disappear, we can return to that if there are questions.

Speaker #2: But operating free cash flow reaches $11.3 billion. You'll see, looking in greater detail at the figures that we have, an improvement in the trend across our activities.

Speaker #2: And this is maintained by the strong desirability of our brands. Numerous initiatives have been taken across our businesses. I'd cite here, in no particular order, Vuitton, with Pietro Beccari, who has been heading up that business for years at my side in a masterly fashion.

Bernard Arnault: I'd cite here in no particular order, Vuitton, with Pietro Beccari, who has been heading up that business for years at my side in a masterly fashion. We've taken a great many initiatives. The most prominent and the most outstanding was the opening in Shanghai. I visited a while back the Vuitton ship, a museum. That's the ship, not at sea, but on a square. That's very successful, very successful for the brand, because every week, I think there are about 100,000 people around that ship. Inside, it's magnificent, very refined, high-quality craftsmanship. Constructed and crafted by the Vuitton workshops and craftsmen. We've also expanded the Dior brand considerably. Last year, we opened two houses in the United States, one in New York and one in Los Angeles, both highly creative and refined, but also very successful.

I'd cite here in no particular order, Vuitton, with Pietro Beccari, who has been heading up that business for years at my side in a masterly fashion. We've taken a great many initiatives. The most prominent and the most outstanding was the opening in Shanghai. I visited a while back the Vuitton ship, a museum. That's the ship, not at sea, but on a square. That's very successful, very successful for the brand, because every week, I think there are about 100,000 people around that ship. Inside, it's magnificent, very refined, high-quality craftsmanship. Constructed and crafted by the Vuitton workshops and craftsmen. We've also expanded the Dior brand considerably. Last year, we opened two houses in the United States, one in New York and one in Los Angeles, both highly creative and refined, but also very successful.

Speaker #2: And we've taken a great many initiatives, the most, prominent and the most, outstanding was the opening in Shanghai. And I visited, a few, a while back of the, Vuitton ship, a museum that's, the ship, not at sea, but on a square that's very successful, very successful for the brand because every week I think there are about 100,000, people around that, that ship.

Speaker #2: Inside, it's magnificent—very refined, high-quality craftsmanship, constructed and crafted by the Vuitton workshops and craftsmen. We've also expanded the Dior brand considerably last year.

Speaker #2: We opened two houses in the United States, one in New York and one in Los Angeles, both highly creative and refined, that are also very successful. And more recently, we opened a Maison Dior, also in Beijing, next to a new Vuitton house.

Bernard Arnault: And more recently, we opened a Maison Dior, also in Beijing, next to a new Vuitton house. So, a lot of activity, a lot of creation. Before going into the more specific details of the various activities, I'd like to emphasize here the new progress in the group's commitments. For us, it's of prime importance. You have the table on the screen showing everything we're achieving in great many important areas: climate, biodiversity, the commitment and engagement of our employees. Well, on the engagement, the roadmap, Balance 2021-2025, is very positive. We've reached all the commitments. Equal opportunities, that's borne fruit, those initiatives. 50% of women in key positions within the group. Another key initiative, the Institute of Trades of Excellence, to preserve craftsmanship, and has trained over 3,800 apprentices since it was established. On the environment, I'll be able to take your questions on that.

And more recently, we opened a Maison Dior, also in Beijing, next to a new Vuitton house. So, a lot of activity, a lot of creation. Before going into the more specific details of the various activities, I'd like to emphasize here the new progress in the group's commitments. For us, it's of prime importance. You have the table on the screen showing everything we're achieving in great many important areas: climate, biodiversity, the commitment and engagement of our employees. Well, on the engagement, the roadmap, Balance 2021-2025, is very positive. We've reached all the commitments. Equal opportunities, that's borne fruit, those initiatives. 50% of women in key positions within the group. Another key initiative, the Institute of Trades of Excellence, to preserve craftsmanship, and has trained over 3,800 apprentices since it was established. On the environment, I'll be able to take your questions on that.

Speaker #2: So, a lot of activity, a lot of creation. Before going into the more specific details of the various activities, I'd like to emphasize here the new progress in the group's commitments for us.

Speaker #2: It's of prime importance. You have the table on the screen showing everything we're achieving in a great many important areas: climate, biodiversity, the commitment and engagement of our employees.

Speaker #2: Well, on the engagement, the roadmap, Balance 21-25 is very positive. We've reached all the commitments—equal opportunities. That's borne fruit. Those initiatives: 50% of women in key positions within the group, another key initiative, the Institute of Trades of Excellence to preserve craftsmanship and has trained over 3,800 apprentices since it was established. On the environmental, to be able to take your questions on that.

Speaker #2: The group's leadership was once again recognized, because in the CDP, the Carbon Disclosure Project, we've reached the best score: AAA. Now, circular design—41% of materials used to make the Maison products now sort through the recycling process.

Bernard Arnault: The group's leadership was once again recognized because in the CDP, the Carbon Disclosure Project, we've reached the best score, AAA. Now, circular design: 41% of materials used to make the Maisons' products now go through the recycling process. Recycling raw materials is up, and we've remained mobilized to protect and regenerate all our ecosystems. Let's now move to a brief but more detailed review of our business groups. Firstly, wines and spirits. In wines and spirits, our brands are displaying good resilience in a challenging context, difficult in particular for cognac, which, both in China and the United States, is affected by tariffs that have exceeded our forecasts. So, for cognac, we're facing a difficulty due to that development, but we're addressing it. We're trying to reach agreements. We've made progress with China.

The group's leadership was once again recognized because in the CDP, the Carbon Disclosure Project, we've reached the best score, AAA. Now, circular design: 41% of materials used to make the Maisons' products now go through the recycling process. Recycling raw materials is up, and we've remained mobilized to protect and regenerate all our ecosystems. Let's now move to a brief but more detailed review of our business groups. Firstly, wines and spirits. In wines and spirits, our brands are displaying good resilience in a challenging context, difficult in particular for cognac, which, both in China and the United States, is affected by tariffs that have exceeded our forecasts. So, for cognac, we're facing a difficulty due to that development, but we're addressing it. We're trying to reach agreements. We've made progress with China.

Speaker #2: Recycling raw materials is up, and we've remained mobilized to protect and regenerate all our ecosystems. Let's now move to a brief, but more detailed, review of our business groups.

Speaker #2: Firstly, wines and spirits. In wines and spirits, our brands are displaying good resilience in a challenging context. A difficult context in particular for cognac, which, both in China and the United States, is affected by tariffs that have exceeded our forecasts.

Speaker #2: So, for Cognac, we're facing a difficulty during, due to that development, but we're addressing it. We're trying to reach agreements. We've made progress with China.

Speaker #2: I hope we'll make progress with the United States. If international relations are restored—and that should be hoped for—and champagne is holding up well.

Bernard Arnault: I hope we'll make progress with the United States if international relations are restored, and that should be hoped for. Champagne is holding up well in a market that is less buoyant. Perhaps there were fewer celebrations in 2025, but Veuve Clicquot, the largest market, the United States and Asia, is growing in volume terms. Also, a good year for Moët & Chandon, once again benefiting from high visibility. We've resumed the partnership with Formula 1 Grand Prix races, and that's very promising for Moët & Chandon that celebrates every Formula 1 Grand Prix with a bottle of our Champagne. Rosé wines are also growing well. That was a good acquisition. It wasn't the case of all acquisitions, but that was particularly felicitous. So, we're way out in front, and we're leader for rosé wine, be it Château d'Esclans, Minuty, or Galoupet.

I hope we'll make progress with the United States if international relations are restored, and that should be hoped for. Champagne is holding up well in a market that is less buoyant. Perhaps there were fewer celebrations in 2025, but Veuve Clicquot, the largest market, the United States and Asia, is growing in volume terms. Also, a good year for Moët & Chandon, once again benefiting from high visibility. We've resumed the partnership with Formula 1 Grand Prix races, and that's very promising for Moët & Chandon that celebrates every Formula 1 Grand Prix with a bottle of our Champagne. Rosé wines are also growing well. That was a good acquisition. It wasn't the case of all acquisitions, but that was particularly felicitous. So, we're way out in front, and we're leader for rosé wine, be it Château d'Esclans, Minuty, or Galoupet.

Speaker #2: In a market that is less buoyant, perhaps there were fewer celebrations in 2025, but Veuve Clicquot, in the largest market—the United States—and Asia, is growing in volume terms.

Speaker #2: And also a good year for Moët & Chandon. Once again, benefiting from high visibility. We've resumed the partnership with Formula One Grand Prix races, and that's very promising for Moët & Chandon.

Speaker #2: That celebrates every Formula One Grand Prix with a bottle of our champagne. Rosé wines are also growing well. That was a good acquisition.

Speaker #2: It wasn't the case of all acquisitions, but that was particularly felicitous. So we're way out in front, and we're the leader for rosé wine, be it Château Galopé. Those three acquisitions are d'Esclans, Miloutais, or Galopé.

Bernard Arnault: Those three acquisitions are faring very well. As I said, it's a bit more challenging for cognac, and that explains the results that you've seen for that business. Moving now to fashion and leather goods. The event of the week was the Dior show of haute couture. Everyone was wondering how it was going to unfold. We have a great creative artist that's never done couture. Will he be able to do that? We attended the show yesterday. It was absolutely amazing. There were even spectators who were in tears. So moved were they by the creativity, the quality, the craftsmanship of the clothes. And John Galliano, the former creative artist of the house, whom we invited, who worked previously with Mr. Toledano, very successful too. Well, he was particularly moved to see such a success remotely.

Those three acquisitions are faring very well. As I said, it's a bit more challenging for cognac, and that explains the results that you've seen for that business. Moving now to fashion and leather goods. The event of the week was the Dior show of haute couture. Everyone was wondering how it was going to unfold. We have a great creative artist that's never done couture. Will he be able to do that? We attended the show yesterday. It was absolutely amazing. There were even spectators who were in tears. So moved were they by the creativity, the quality, the craftsmanship of the clothes. And John Galliano, the former creative artist of the house, whom we invited, who worked previously with Mr. Toledano, very successful too. Well, he was particularly moved to see such a success remotely.

Speaker #2: Faring very well. As I said, it's a bit more challenging for Cognac, and that explains the results that you've seen for that business. Moving now to Fashion and Leather Goods.

Speaker #2: The event of the week was the Dior show of haute couture. Everyone was wondering how it was going to unfold. We have a great, creative artist.

Speaker #2: He's never done couture. Will he be able to do that? We attended the show yesterday. It was absolutely amazing. There were even spectators who were in tears.

Speaker #2: So moved were they by the creativity, the quality, the craftsmanship of the clothes. And Jean Gallianeau, the former creative artist of the house, whom we invited, who worked previously with Mr. Toledano—very successful, too.

Speaker #2: Well, he was particularly moved to see such a success, remotely, and so Dior at the start of this year is fully benefiting from this creative renewal that is producing clothes for both men and women.

Bernard Arnault: And so, Dior, at the start of this year, is fully benefiting from this creative renewal that is producing clothes for both men and women. It's the first time since Christian Dior that we have a creative director who produces all these products. And they're very much in demand at the start of the year. We'll see if it lasts. We must never be too optimistic, but it's off to a good start. Vuitton, there again last week, very fine show by Pharrell Williams with some highly wearable clothes that's always desirable. Sometimes it drifts off a bit, but these were truly clothes that we wanted to buy. And some amazing Vuitton trunks. I won't give you the price. You may not believe this. What's more, most of them have been sold.

And so, Dior, at the start of this year, is fully benefiting from this creative renewal that is producing clothes for both men and women. It's the first time since Christian Dior that we have a creative director who produces all these products. And they're very much in demand at the start of the year. We'll see if it lasts. We must never be too optimistic, but it's off to a good start. Vuitton, there again last week, very fine show by Pharrell Williams with some highly wearable clothes that's always desirable. Sometimes it drifts off a bit, but these were truly clothes that we wanted to buy. And some amazing Vuitton trunks. I won't give you the price. You may not believe this. What's more, most of them have been sold.

Speaker #2: It's the first time since Christian Dior that we have a creative director who produces all these products. And they're very much in demand at the start of the year.

Speaker #2: We'll see if it lasts. We must never be too optimistic, but it's off to a good start. Fine, very Vuitton—there again last week, show.

Speaker #2: By Pharrell Williams. Highly wearable clothes—that's always desirable. Sometimes it drifts off a bit, but these were truly clothes that we wanted to buy, and amazing Vuitton trunks.

Speaker #2: I won't give you the price. You may not believe this. What's more, that most of them have been sold. There are some extraordinary cases—trunks.

Bernard Arnault: There's some extraordinary cases, trunks, some of them produced by the same craftspeople who did the stained glass windows at Notre-Dame. So, an absolutely unique show. That was for the events held this week. Let's also mention that in 2025, Louis Vuitton launched a makeup range that started off well after continuous success and very commendable, with perfumes that were created by a great creator, Mr. Cavallier-Belletrud, and continues without interruption to deliver double-digit growth. Yes, we can say that. It's no secret. And his perfumes are quite successful and are only sold in Dior stores. So, for fashion and leather goods, oh yes, we also have hired new designers last year at Céline, with the American creative director, Michael Rider, who's off to a good start at Loewe since Jonathan has left for Dior. We have Jack and Lazaro, who previously were in the United States.

There's some extraordinary cases, trunks, some of them produced by the same craftspeople who did the stained glass windows at Notre-Dame. So, an absolutely unique show. That was for the events held this week. Let's also mention that in 2025, Louis Vuitton launched a makeup range that started off well after continuous success and very commendable, with perfumes that were created by a great creator, Mr. Cavallier-Belletrud, and continues without interruption to deliver double-digit growth. Yes, we can say that. It's no secret. And his perfumes are quite successful and are only sold in Dior stores. So, for fashion and leather goods, oh yes, we also have hired new designers last year at Céline, with the American creative director, Michael Rider, who's off to a good start at Loewe since Jonathan has left for Dior. We have Jack and Lazaro, who previously were in the United States.

Speaker #2: Some of them produced by the same craftspeople who did the stained glass windows at Notre Dame. So an apt, a truly unique, show. So that was for the events held this week.

Speaker #2: Let's also mention that in 2025, Louis Vuitton launched a makeup range that started off well after continuous success, and was very commendable, with perfumes that were created by a great creator, Mr. Cavalier.

Speaker #2: And continues, without interruption, to deliver double-digit growth. Yes, we can say that. It's no secret. And his perfumes are quite successful, and only sold in Dior stores.

Speaker #2: So, for fashion and leather goods, oh yes, we also have hired new designers last year at Céline, with the American creative director Michael Ryder, who's off to a good start.

Speaker #2: At Loewe, since Jonathan has left for Dior, we have Jack and Lazzaro, who previously were in the United States. That's off to a good start.

Bernard Arnault: That's off to a good start. At Fendi, Maria Grazia left Dior to join Fendi. She wanted to go back to Rome, and there she is. The first show is going to be held in a fortnight. We'll see what that, but I'm very hopeful. So, all that's organized. Let's mention a great success, Loro Piana, that continues to go from strength to strength. We have just one problem at Loro Piana that we have to slow the growth. We don't want to go too fast because the quality of products must be maintained. And soon it gets a bit carried away. We slow down at Loro Piana. I don't know if we've been asked, but we've just bought a stake of the partners who've been with us since the start, Luisa Loro Piana and Pier Luigi Loro Piana, members of the family. We wanted to buy a we bought a section.

That's off to a good start. At Fendi, Maria Grazia left Dior to join Fendi. She wanted to go back to Rome, and there she is. The first show is going to be held in a fortnight. We'll see what that, but I'm very hopeful. So, all that's organized. Let's mention a great success, Loro Piana, that continues to go from strength to strength. We have just one problem at Loro Piana that we have to slow the growth. We don't want to go too fast because the quality of products must be maintained. And soon it gets a bit carried away. We slow down at Loro Piana. I don't know if we've been asked, but we've just bought a stake of the partners who've been with us since the start, Luisa Loro Piana and Pier Luigi Loro Piana, members of the family. We wanted to buy a we bought a section.

Speaker #2: And at Fendi, Maria Grazia, left Dior to join Fendi. She wanted to go back to Rome, and there she is in the first—the first show's going to be held in a fortnight.

Speaker #2: We'll see about that, but I'm very hopeful. So all that's organized. Great, success. Let's mention a L'Europeana that continues to go from strength to strength.

Speaker #2: We have just one problem at L'Europiana: that we have to slow the growth. We don't want to go too fast, because the quality of products must be maintained, and soon it gets a bit carried away.

Speaker #2: We, we slow, slow down at L'Europiana. I don't know if we've been asked, but we've just bought a stake of the, the, the partners who've been with us since the start.

Speaker #2: The Luisa and PG L'Europiana, members of the family. We wanted to buy a—we bought a section. They wanted to keep a stake.

Bernard Arnault: They wanted to keep a stake. I think we had 85%. So, we acquired half their investment, half their stake, because it's good to have the family. They're highly connected with the manufacturing techniques, places in the world where we can source excellent products. Pier Luigi Loro Piana goes regularly to Peru to look after the vicuña. We actually saved that species that was totally in decline. And thanks to that activity, I think we have a few thousand hectares in Peru where we breed the vicuña. Very happy to be there. Otherwise, they would have been extinct. And so, we can produce great products with those animals. Here, we have some numbers experts. And I just want to say that the valuation at which we acquired the shares of our partners, their investment, I think, is equal to 10 times or 5 times, perhaps, the value of their initial stake.

They wanted to keep a stake. I think we had 85%. So, we acquired half their investment, half their stake, because it's good to have the family. They're highly connected with the manufacturing techniques, places in the world where we can source excellent products. Pier Luigi Loro Piana goes regularly to Peru to look after the vicuña. We actually saved that species that was totally in decline. And thanks to that activity, I think we have a few thousand hectares in Peru where we breed the vicuña. Very happy to be there. Otherwise, they would have been extinct. And so, we can produce great products with those animals. Here, we have some numbers experts. And I just want to say that the valuation at which we acquired the shares of our partners, their investment, I think, is equal to 10 times or 5 times, perhaps, the value of their initial stake.

Speaker #2: I think we had 85%. So we, acquired half their, investment, half their steak, because it's, it's good to have that, that the, the, the family, they're highly connected with the, manufacturing techniques, places in, the world where we can source excellent, products.

Speaker #2: PG L'Europiana goes regularly to Peru. Vigonia. We, too, look after the actually saved that species that was totally in decline, and thanks to that activity, I think we have a few thousand hectares in Peru where we breed the vigonia.

Speaker #2: Very happy to be there. Otherwise, they would have been extinct. And so we can produce great, great products with those animals. Here we have some numbers experts.

Speaker #2: And I just want to say that the valuation at which we acquired the shares of our, of our partners—their investment—I think is equal to 10 times, or 5 times perhaps, the value of their initial stake.

Speaker #2: In other words, when we acquired the company, I think we paid $2, $2 billion for it, right? And today, it's worth about $10. That's about the, the, the—that you can talk to other brands when they ratio.

Bernard Arnault: In other words, when we acquired the company, I think we paid EUR 2 billion for it, right? Today, it's worth about EUR 10 billion. That's about the ratio. I'm saying that so that you can talk to other brands when they team up with us. Firstly, the companies progress, and they progress very well in maintaining their heritage. The partners, the family partners, do get a very good deal. If you could spread the word, that would be useful to us. I think I've covered everything. I can move to perfumes and cosmetics. Well, firstly, Parfums Christian Dior continues to innovate products that, for large part, world leaders. The Sauvage, the world's best-selling men's fragrance, relaunched some 10 years ago, and far and away, the world's leading men's fragrance. Also, makeup and lipstick. Dior, the leading luxury lipsticks globally in the world.

In other words, when we acquired the company, I think we paid EUR 2 billion for it, right? Today, it's worth about EUR 10 billion. That's about the ratio. I'm saying that so that you can talk to other brands when they team up with us. Firstly, the companies progress, and they progress very well in maintaining their heritage. The partners, the family partners, do get a very good deal. If you could spread the word, that would be useful to us. I think I've covered everything. I can move to perfumes and cosmetics. Well, firstly, Parfums Christian Dior continues to innovate products that, for large part, world leaders. The Sauvage, the world's best-selling men's fragrance, relaunched some 10 years ago, and far and away, the world's leading men's fragrance. Also, makeup and lipstick. Dior, the leading luxury lipsticks globally in the world.

Speaker #2: I'm saying that, so, team up with us. Firstly, the companies progress, and they progress very well in maintaining their heritage and the partners, the family partners, to get a very good deal.

Speaker #2: If you could spread the word, that would be useful. To us. I think I've covered everything. I can move cosmetics. Well, firstly, Parfums Suisse, Christian Dior.

Speaker #2: continues to innovate. products that for large part, world leaders, the Sauvage, the world's best-selling men's fragrance, relaunched some 10 years ago. And far and away, the world's, leading men's fragrance.

Speaker #2: Also, makeup and lipstick. Dior, the leading luxury lipstick globally, in the world. One Dior lipstick is sold every two seconds at Salon of Lipstick.

Bernard Arnault: One Dior lipstick is sold every two seconds. That's a lot of lipsticks. They're all manufactured in France with an R&D center that's one of the best in the world, if not the best, for cosmetics. Then, we have other activities with other brands that are less prestigious, even if they're smaller, less international, such as Guerlain. Also, has great products. I'll answer questions on that if there are any. Let's move to watches and jewelry. Watches and jewelry. Still, on more recent acquisitions, Tiffany, that continues a very impressive record. Tiffany had excellent products, but we redirected the house so that it can develop in jewelry and high jewelry, fewer silver products. We gradually renovated, and it's far from over the rolling out the new store concept.

One Dior lipstick is sold every two seconds. That's a lot of lipsticks. They're all manufactured in France with an R&D center that's one of the best in the world, if not the best, for cosmetics. Then, we have other activities with other brands that are less prestigious, even if they're smaller, less international, such as Guerlain. Also, has great products. I'll answer questions on that if there are any. Let's move to watches and jewelry. Watches and jewelry. Still, on more recent acquisitions, Tiffany, that continues a very impressive record. Tiffany had excellent products, but we redirected the house so that it can develop in jewelry and high jewelry, fewer silver products. We gradually renovated, and it's far from over the rolling out the new store concept.

Speaker #2: And they're all manufactured in France, with an R&D center that's one of the best in the world, if not the best, for cosmetics.

Speaker #2: Then we have other activities, with other brands that are less prestigious, even if they're less—such as, they're smaller, less international. Guerlain also has great products.

Speaker #2: I can't go, I'll answer questions on that if there are any. Let's move to watches and jewelry. Watches and jewelry. Still on more recent acquisitions, Tiffany—that continues, very impressive, record.

Speaker #2: Tiffany had excellent products, but we, we redirected the house so that it can develop in jewelry and high jewelry. Fewer silver products, and we gradually renovated, and we're—it's far from over.

Speaker #2: The, rolling out the new store concept and Tiffany, if we continue like that, perhaps what we'd have to wait another 5 to 10 years.

Bernard Arnault: Tiffany, if we continue like that, perhaps we'll have to wait another 5 to 10 years, is likely to become the world's leading jewelry brand, which is no mean feat if we get there. But for the time being, we wrote, for example, a new Tiffany store in Tokyo at the end of last year. That was a huge success. It got off to a very positive start. Bulgari, at the end of the year, posted some quite outstanding figures. You're familiar with the products, the Serpenti, Diva, etc. And all these products are very successful. They're iconic and very promising for next year because jewelry is an area today. We see this in our main peers. Excellent Cartier, a great company, is expanding well. It's a promising sector. We're also developing jewelry very actively at Louis Vuitton. And it has great potential.

Tiffany, if we continue like that, perhaps we'll have to wait another 5 to 10 years, is likely to become the world's leading jewelry brand, which is no mean feat if we get there. But for the time being, we wrote, for example, a new Tiffany store in Tokyo at the end of last year. That was a huge success. It got off to a very positive start. Bulgari, at the end of the year, posted some quite outstanding figures. You're familiar with the products, the Serpenti, Diva, etc. And all these products are very successful. They're iconic and very promising for next year because jewelry is an area today. We see this in our main peers. Excellent Cartier, a great company, is expanding well. It's a promising sector. We're also developing jewelry very actively at Louis Vuitton. And it has great potential.

Speaker #2: It is likely to become the world's leading jewelry brand, which is no mean feat if we get there. But for the time being, we wrote, for example, a new Tiffany store in Tokyo at the end of last year.

Speaker #2: That was a huge success. It's got off to a very positive start. Bulgari, at the end of the year, posted some quite outstanding figures.

Speaker #2: The products—well, you're familiar with the Serpenti, Diva, etc.—and all these products are very successful. They're iconic and very promising for next year because jewelry is an area that we see this in our main peers.

Speaker #2: Excellent. Cartier, a great company, is expanding well. It's a promising sector. We're also developing jewelry very actively at Louis Vuitton, and it has the great store on the Champs-Élysées. Lastly, it has great potential.

Speaker #2: You'll see when we open watches. With TAG Heuer, that is also developing very successfully. TAG Heuer benefits, like Moet does with the Formula One.

Bernard Arnault: You'll see when we open the store on the Champs-Élysées. Lastly, watches with TAG Heuer that is also developing very successfully. TAG Heuer benefits like Moët does with the Formula 1. It's the official timekeeper for all Formula 1s. Hublot, Zenith, Chaumet have also brought out products, notably Hublot with the latest Big Bang collection that's very successful. Final business that I'd like to mention, selective retailing. There are the two main department stores in Paris, Le Bon Marché and La Samaritaine. I won't go into detail, but they're iconic stores and stores that work well. La Samaritaine, not so well, but it's recovering. We're changing the way it was managed because up until about a year ago, it was in conjunction with DFS. It was geared more to the duty-free customers. We're trying to manage that thanks to Mr. Wagner.

You'll see when we open the store on the Champs-Élysées. Lastly, watches with TAG Heuer that is also developing very successfully. TAG Heuer benefits like Moët does with the Formula 1. It's the official timekeeper for all Formula 1s. Hublot, Zenith, Chaumet have also brought out products, notably Hublot with the latest Big Bang collection that's very successful. Final business that I'd like to mention, selective retailing. There are the two main department stores in Paris, Le Bon Marché and La Samaritaine. I won't go into detail, but they're iconic stores and stores that work well. La Samaritaine, not so well, but it's recovering. We're changing the way it was managed because up until about a year ago, it was in conjunction with DFS. It was geared more to the duty-free customers. We're trying to manage that thanks to Mr. Wagner.

Speaker #2: It's the official timekeeper for all Formula Ones. Hublot, Zenith, and Chaumet have also brought out products, notably Hublot with the latest Big Bang collection that's very successful.

Speaker #2: The final business that I'd like to mention is selective retailing. There are two main department stores in Paris: Le Bon Marché and La Samaritaine. I won't go into detail, but they're iconic stores.

Speaker #2: And stores that work well. La Samaritaine, not so, not so well, but it's recovering and we're changing the way it was managed because, up until about a year ago, it was in conjunction with DFS.

Speaker #2: It was geared more to the duty-free customers. We're trying to manage that, thanks to Mr. Wagner. Like the Bon Marché, they obtain the same results as Le Bon Marché.

Bernard Arnault: Like Le Bon Marché, they obtained the same results as Le Bon Marché. That'll be great. And we're off to a good start. The outstanding business in the block of selective retailing is Sephora. Well, Sephora, in the space of a few years, we acquired it back in 1998 or 1999. It has become the unchallenged world leader for the retailing of cosmetic products, selective retailing, and that worldwide. What's very interesting is we only cover a very small portion of the world. So, everything remains to be done, even if we're posting very significant revenue. I won't let that secret out. Very good profitability, good growth. So, we're very hopeful. Mr. Motte is managing that in a masterly fashion. DFS, less interesting. We've sold most of it. We'll continue to exit slowly but surely. What can we say briefly about 2026, the outlook?

Like Le Bon Marché, they obtained the same results as Le Bon Marché. That'll be great. And we're off to a good start. The outstanding business in the block of selective retailing is Sephora. Well, Sephora, in the space of a few years, we acquired it back in 1998 or 1999. It has become the unchallenged world leader for the retailing of cosmetic products, selective retailing, and that worldwide. What's very interesting is we only cover a very small portion of the world. So, everything remains to be done, even if we're posting very significant revenue. I won't let that secret out. Very good profitability, good growth. So, we're very hopeful. Mr. Motte is managing that in a masterly fashion. DFS, less interesting. We've sold most of it. We'll continue to exit slowly but surely. What can we say briefly about 2026, the outlook?

Speaker #2: That'll be great. And we're off to a good start. The outstanding business in the bloc for Selective Retailing is Sephora. Well, Sephora in the space of a few years.

Speaker #2: We acquired it back in '98 or '99. It's become the unchallenged world leader for the retailing of cosmetic products—selective retailing—and that worldwide.

Speaker #2: What's very interesting is we only cover a very small portion of the world. So everything remains to be done, even if we're posting very significant revenue.

Speaker #2: I won't let that secret out. Very good profitability. Good growth, so we're very hopeful. Mr. Moët is managing that in a masterly fashion. DFS, less interesting.

Speaker #2: We'll continue. We've sold most of it, to exit slowly but surely. What can we say briefly about 2026? The outlook. I always say that in our businesses, I am optimistic in the medium term, but short term, it's very difficult to provide a serious forecast.

Bernard Arnault: I always say that in our businesses, I am optimistic in the medium term. But short term, it's very difficult to provide a serious forecast. So many events and the pace of decisions taken left and right in the various countries, it's extremely difficult to control all these geo-economic impacts on our companies. One thing I'm sure of is that the desire for high-quality products goes hand in hand with growing living standards in the world. And that's set to continue, even though through ups and downs in certain countries, some countries that are faring less well. But the global trend is there. So, long term, we can be optimistic.

I always say that in our businesses, I am optimistic in the medium term. But short term, it's very difficult to provide a serious forecast. So many events and the pace of decisions taken left and right in the various countries, it's extremely difficult to control all these geo-economic impacts on our companies. One thing I'm sure of is that the desire for high-quality products goes hand in hand with growing living standards in the world. And that's set to continue, even though through ups and downs in certain countries, some countries that are faring less well. But the global trend is there. So, long term, we can be optimistic.

Speaker #2: So many events, and the pace of decisions taken left and right in the various countries—it's extremely difficult to control all these geo-economic impacts on our companies.

Speaker #2: One thing I'm sure of is that the desire for high-quality products goes hand in hand with growing living standards in the world, and that's said to continue, even through ups and downs in certain countries.

Speaker #2: Some countries are faring less well, but the global trend is there. So, long term, we can be optimistic. And this year, there's no doubt that with continued geopolitical crises, with economic uncertainty, with the policies of certain countries—our own—that are against companies, to tax them to the hilt and create unemployment, I think there's a reason to be somewhat reserved.

Bernard Arnault: This year, there's no doubt that with continued geopolitical crises, with economic uncertainty, with the policies of certain countries, our own, that are against companies to tax them to the hilt and create unemployment, I think there's a reason to be somewhat reserved. So, we'll apply the same technique as in 2025. We'll create some very fine products and sell them worldwide, open up fine stores, and manage things very closely, contain costs, do what we've done this year so that in 2026, cash flow is also up. Once again, I'd like to thank all employees who were with us this evening. This success is down to them. We're confident in the future. I'd like to conclude by saying that one of the advantages of the group is that we're a family group.

This year, there's no doubt that with continued geopolitical crises, with economic uncertainty, with the policies of certain countries, our own, that are against companies to tax them to the hilt and create unemployment, I think there's a reason to be somewhat reserved. So, we'll apply the same technique as in 2025. We'll create some very fine products and sell them worldwide, open up fine stores, and manage things very closely, contain costs, do what we've done this year so that in 2026, cash flow is also up. Once again, I'd like to thank all employees who were with us this evening. This success is down to them. We're confident in the future. I'd like to conclude by saying that one of the advantages of the group is that we're a family group.

Speaker #2: So we'll apply the same technique as in 2025. We'll create some very fine products and sell them worldwide, open up fine stores, and manage things very closely.

Speaker #2: Contain costs. Do what we've done this year so that in 2026, cash flow is, also to thank up. Once again, I'd like to thank all employees who are with us this evening.

Speaker #2: This success is down to them. We're confident in the future. I'd like to conclude by saying that one of the advantages of the group is that we're a family group, and a family group.

Bernard Arnault: And the analysts may not like this, but a family group isn't riveted to the quarterly results. It invests medium term. We create products for the long term. And we're not mesmerized by what's going to happen in the coming quarter, even if it's important. But we take the long-term view, and for the time being, it has stood us in good stead. That's something I don't know if it'll please observers. Family group has about 50% of LVMH's capital. And since now, at the start of a new year, we're entitled to acquire a bit more. We were blocked up till now at the maximum. And this year, we'll cross the 50% threshold. So, we'll own over 50% of the share capital. So, we believe in what we do, and we're showing it in that way. Thank you very much.

And the analysts may not like this, but a family group isn't riveted to the quarterly results. It invests medium term. We create products for the long term. And we're not mesmerized by what's going to happen in the coming quarter, even if it's important. But we take the long-term view, and for the time being, it has stood us in good stead. That's something I don't know if it'll please observers. Family group has about 50% of LVMH's capital. And since now, at the start of a new year, we're entitled to acquire a bit more. We were blocked up till now at the maximum. And this year, we'll cross the 50% threshold. So, we'll own over 50% of the share capital. So, we believe in what we do, and we're showing it in that way. Thank you very much.

Speaker #2: The analysts may not like this, but a family group isn't riveted to the quarterly results. It invests medium term. We create products for the long term.

Speaker #2: And we're not mesmerized by what's going to happen in the coming quarter, even if it's important. But we take the long-term view for the time being.

Speaker #2: It has stood us in good stead. That's something—I don't know if it'll please observers—our family group has about 50% of LVMH's capital, and since now we're at the start of a new year, we're entitled to acquire a bit more.

Speaker #2: We were blocked up till now at the maximum. And this year, we'll cross the 50% threshold. So we'll own over 50% of the share capital.

Speaker #2: So we believe in what we do, and we're showing it in that way. Thank you very much, Madame Cabanis. Our Chief Financial Officer will go into greater detail than I have for the 2025 financials.

Bernard Arnault: Madame Cabanis, our Chief Financial Officer, will go into greater detail than I have for the 2025 financials. Thank you. Mesdames et Messieurs, bonsoir. Good evening, ladies and gentlemen. Thank you for being here. So, let's look into the financial aspects for 2025 in more detail. Some key figures. I shall not remain too long on this slide because Mr. Arnault has given you explanations. A few comments, nonetheless. Sales were stable or slightly down. Organic growth, -1% over the year, but an improvement in H2 because we renewed with organic growth to the tune of +1% in H2 for the year as a whole. Sales were down 5% at a current exchange rate in published data because there was a negative currency effect. I mean, of course, the main invoicing currencies, the dollar, renminbi, and yen, were all down. Operating profit was down 9%.

Madame Cabanis, our Chief Financial Officer, will go into greater detail than I have for the 2025 financials. Thank you.

Speaker #2: Thank you.

Speaker #1: Mesdames, messieurs, bonsoir.

Speaker #2: Good evening, ladies and gentlemen. Thank you for being here. So, let's look into the financial aspects for 2025 in more detail. Some key figures—I shall not remain too long on this slide because Mr. Arnault has given you explanations.

Cécile Cabanis: Mesdames et Messieurs, bonsoir.

[Translator]: Good evening, ladies and gentlemen. Thank you for being here. So, let's look into the financial aspects for 2025 in more detail. Some key figures. I shall not remain too long on this slide because Mr. Arnault has given you explanations. A few comments, nonetheless. Sales were stable or slightly down. Organic growth, -1% over the year, but an improvement in H2 because we renewed with organic growth to the tune of +1% in H2 for the year as a whole. Sales were down 5% at a current exchange rate in published data because there was a negative currency effect. I mean, of course, the main invoicing currencies, the dollar, renminbi, and yen, were all down. Operating profit was down 9%.

Speaker #2: A few comments, nonetheless. Sales were stable or slightly down. Organic growth minus 1% over the year, but an improvement in H2 because we renewed with organic growth to the tune of plus 1% in H2 for the year as a whole.

Speaker #2: 5% at current exchange rates. Sales were down in published data because there was a negative currency effect. I mean, of course, the main invoicing currency is the dollar. Renminbi and yen were all down.

Speaker #2: Operating profit was down 9%. A significant portion, indeed, the most of it indeed most of the decline is due to a currency effect and as Mr. Arnault pointed out, sound financial position, free cash flow stood in standing at 11.3 billion, reflecting the discipline that our teams were able to display in a less favorable environment.

Bernard Arnault: A significant portion, indeed, most of it, indeed, most of the decline is due to a currency effect. As Mr. Arnault pointed out, sound financial position, free cash flow standing at EUR 11.3 billion, reflecting the discipline that our teams were able to display in a less favorable environment. Cash flow was up 8%, even though profit itself was down. If you look at the details, starting with sales themselves, -5% in published data, there was a currency effect of 3%. Now, the currency effect was not homogeneous over the years. You remember we started off in Q1 with a +3% positive effect, therefore. In Q4, the currency effect was negative to the tune of -6%. So, you have an average over the year, but we're ending the year with a negative effect, -6%.

A significant portion, indeed, most of it, indeed, most of the decline is due to a currency effect. As Mr. Arnault pointed out, sound financial position, free cash flow standing at EUR 11.3 billion, reflecting the discipline that our teams were able to display in a less favorable environment. Cash flow was up 8%, even though profit itself was down. If you look at the details, starting with sales themselves, -5% in published data, there was a currency effect of 3%. Now, the currency effect was not homogeneous over the years. You remember we started off in Q1 with a +3% positive effect, therefore. In Q4, the currency effect was negative to the tune of -6%. So, you have an average over the year, but we're ending the year with a negative effect, -6%.

Speaker #2: Cash flow was up, itself was down. If you look at the 8%, even though profit details starting with sales, minus 5% in published data, there was a currency effect of 3%.

Speaker #2: Not homogeneous over the years. Now, the currency effect was—you remember we started off in Q1 with a plus 3% positive effect; therefore, and in Q4, the currency effect was negative, to the tune of minus 6%.

Speaker #2: So you have an average over the year, but we're ending the year with a negative effect, 6%. So we have to monitor exchange rates for the rest of the year.

Bernard Arnault: So, we have to monitor exchange rates for the rest of the year. We don't have much of a scope effect. This was just organic growth. Regarding the geographic balance, things have not changed. The main territories, namely the United States, Europe, and Asia, account for 26% of our sales. Japan is slightly down to 8%. In other countries, up by 1 point to 14%, with the Middle East displaying significant growth. Looking now at sales by region over the year on a quarterly basis, you start with the two ends, the US and Europe. These two markets were stable. Slight decline in Europe. They have a reverse curve. In H1, there was more growth in Europe because the dollar was high and tourists were buying more in Europe. There was a reverse trend in H2 because the dollar became cheaper.

So, we have to monitor exchange rates for the rest of the year. We don't have much of a scope effect. This was just organic growth. Regarding the geographic balance, things have not changed. The main territories, namely the United States, Europe, and Asia, account for 26% of our sales. Japan is slightly down to 8%. In other countries, up by 1 point to 14%, with the Middle East displaying significant growth. Looking now at sales by region over the year on a quarterly basis, you start with the two ends, the US and Europe. These two markets were stable. Slight decline in Europe. They have a reverse curve. In H1, there was more growth in Europe because the dollar was high and tourists were buying more in Europe. There was a reverse trend in H2 because the dollar became cheaper.

Speaker #2: And we don't have much of a scope effect. This was just organic growth. Regarding the geographic balance, things have not changed in main territories—mainly, namely, the United States, Europe, and Asia—account for 26% of our sales.

Speaker #2: Japan is slightly down to 8%. In other countries, we are up by 1 point to 14%, with the Middle East displaying significant growth. Looking now at sales by region over the year on a quarterly basis, you start with the two ends, the US and Europe.

Speaker #2: These two markets were stable, slight decline in Europe, but they have a reverse curve in H1. There was more growth in Europe because the dollar was high and tourists were buying more in Europe.

Speaker #2: And there was a reverse trend in H2 because the dollar became cheaper. And then people were buying in America itself. We have a basis of comparison, which explains the difference in Japan.

Bernard Arnault: Then people were buying in America itself. We have a basis of comparison which explains the difference in Japan. So, we had also a favorable starting basis of comparison in the previous year, but not as extreme. Asia, other than Japan, enjoyed a similar development, slightly down over the year. If you look at the organic growth, we have wines and spirits down in organic numbers, down 5%. Likewise, fashion and leather goods. We have 3% and 4%, respectively, for watches and jewelry, and selective retailing. If you look at the other side of the screen, you find that when you compare H1 and H2, and you find that there was a significant acceleration for most of our businesses between H1 and H2. If you look at organic growth by quarter and by business, here we have an improvement of organic trends for most businesses in H2.

Then people were buying in America itself. We have a basis of comparison which explains the difference in Japan. So, we had also a favorable starting basis of comparison in the previous year, but not as extreme. Asia, other than Japan, enjoyed a similar development, slightly down over the year. If you look at the organic growth, we have wines and spirits down in organic numbers, down 5%. Likewise, fashion and leather goods. We have 3% and 4%, respectively, for watches and jewelry, and selective retailing. If you look at the other side of the screen, you find that when you compare H1 and H2, and you find that there was a significant acceleration for most of our businesses between H1 and H2. If you look at organic growth by quarter and by business, here we have an improvement of organic trends for most businesses in H2.

Speaker #2: We also had a favorable starting basis of comparison in the previous year, but not as extreme in Asia. Other than Japan, we enjoyed a similar development, slightly down over the year.

Speaker #2: If you look at the organic growth, we have wine and spirits down in organic numbers, down 5%. Likewise, fashion and leather.

Speaker #1: . Good have We a three and 4% , for respectively , jewelry and selective watches and jewelry and selective retailing . And at if you look other the side of the screen , you find that the well , if you compare H1 and H2 and you find that there was a significant acceleration for most of our businesses between H1 and H2 , if you look at organic growth by and quarter have an improvement we organic most trends for of by business , here businesses in H two .

Bernard Arnault: Wines and spirits, champagnes and spirits sales were resilient. Cognac and indeed spirits in general were down. That is because of the specific circumstances in the US. Fashion and leather goods enjoyed a significant improvement starting in Q3, driven by local customers and a resumption of growth in Asia. A less strong basis of comparison for Japan. Some areas of improvement, pockets of improvement, reflecting specific initiatives, new creative initiatives, but also outstanding Louis Vuitton stores and other initiatives taken by all the houses. On watches and jewelry, there was a significant acceleration in H2, especially in Q3. We have a resumption of growth for the watches business with an acceleration of Bulgari, but also a transformation plan on Tiffany, which is now bearing fruit. There's still the weight of legacy, but we are gaining ground quarter after quarter.

Wines and spirits, champagnes and spirits sales were resilient. Cognac and indeed spirits in general were down. That is because of the specific circumstances in the US. Fashion and leather goods enjoyed a significant improvement starting in Q3, driven by local customers and a resumption of growth in Asia. A less strong basis of comparison for Japan. Some areas of improvement, pockets of improvement, reflecting specific initiatives, new creative initiatives, but also outstanding Louis Vuitton stores and other initiatives taken by all the houses. On watches and jewelry, there was a significant acceleration in H2, especially in Q3. We have a resumption of growth for the watches business with an acceleration of Bulgari, but also a transformation plan on Tiffany, which is now bearing fruit. There's still the weight of legacy, but we are gaining ground quarter after quarter.

Speaker #1: And wines and spirits sale or champagnes and were sales resilient . Cognac and indeed spirits in general were down . And that is because of the specific circumstances in the , fashion US and leather goods enjoyed a significant improvement starting , driven by Q3 local customers and a resumption of growth in Asia .

Speaker #1: A less strong basis of comparison for Japan, and some areas of improvement. Pockets of improvement reflecting significant, specific initiatives. New creative initiatives, but also outstanding Louis Vuitton stores and other initiatives taken by all the houses, their jewelry.

Speaker #1: acceleration significant watches and on was a H2 in , especially Q in three . We have a resumption of growth for the watches .

Speaker #1: The watch watches business with an acceleration of Bulgari , but also a transformation plan on Tiffany , which is now bearing fruit . There's still the weight of legacy , but we are gaining ground quarter after quarter .

Bernard Arnault: Selective retailing has enjoyed, of course, Sephora's significant growth in H2. Perfume and cosmetics were stable with a very sustained innovation policy. We were highly selective in our retailing business. That made a big difference on our profits. If you look at the profit from recurring operations, so we're slightly down, down 9% in published data. I was saying earlier on that most of the negative effect was currency effect. You have the illustration right there. We have a EUR 1 billion effect due to exchange rate fluctuations. Without this, the decline would only be 4% on profits from recurring operations. Regarding the various business lines, and again, on current operating profit, on wines and spirits, no surprises there. That is the one business suffering the strongest decline. There was a currency effect. There's also lower volumes and lower mix.

Selective retailing has enjoyed, of course, Sephora's significant growth in H2. Perfume and cosmetics were stable with a very sustained innovation policy. We were highly selective in our retailing business. That made a big difference on our profits. If you look at the profit from recurring operations, so we're slightly down, down 9% in published data. I was saying earlier on that most of the negative effect was currency effect. You have the illustration right there. We have a EUR 1 billion effect due to exchange rate fluctuations. Without this, the decline would only be 4% on profits from recurring operations. Regarding the various business lines, and again, on current operating profit, on wines and spirits, no surprises there. That is the one business suffering the strongest decline. There was a currency effect. There's also lower volumes and lower mix.

Speaker #1: Selective retailing has , of enjoyed course , a significant sephora's growth in H2 and perfume and were cosmetics stable , with a very sustained innovation policy , and we were highly selective in our retailing business .

Speaker #1: And that made a big difference on our profits . If you look at the profit from recurring operations , so we're slightly down down , 9% in published data .

Speaker #1: We were saying earlier on that most of the negative effect was currency effects. And you have the illustration right there. We have a €1 billion effect due to exchange rate fluctuations.

Speaker #1: Without this, the decline would only be 4% on profit from recurring operations. Regarding the various business lines, and again, on current operating profit.

Speaker #1: On wines spirits , no and surprises there . the That is one business suffering the strongest decline . There is a currency effect is also a lower volumes and lower mix , and the first effects of trade tensions China with in the US , fashions and fashion and leather goods also significantly down because of , mostly the currency effect .

Bernard Arnault: The first effects of trade tensions with China and the US. Fashion and Leather Goods also significantly down, mostly because of the currency effect, together with lower sales. But Profit from Recurring Operations sitting at 35%, very high and much higher than the group's long-term history. Watches and Jewelry displayed Profit from Recurring Operations stable, even though there's a significant currency effect and other headwinds related to tariffs, the price of gold, and the cost of Tiffany's transformation, significant capital expenditure there. But that trend is, as I said, bearing fruit. Perfumes and Cosmetics, as I was saying earlier on, there's an improvement, up 8%. So there's a double positive effect of, A, we being very selective in investment to keep our brands attractive. And there was significant work on the model's effectiveness. And that certainly paid off. And then a significant positive effect on Selective Retailing.

The first effects of trade tensions with China and the US. Fashion and Leather Goods also significantly down, mostly because of the currency effect, together with lower sales. But Profit from Recurring Operations sitting at 35%, very high and much higher than the group's long-term history. Watches and Jewelry displayed Profit from Recurring Operations stable, even though there's a significant currency effect and other headwinds related to tariffs, the price of gold, and the cost of Tiffany's transformation, significant capital expenditure there. But that trend is, as I said, bearing fruit. Perfumes and Cosmetics, as I was saying earlier on, there's an improvement, up 8%. So there's a double positive effect of, A, we being very selective in investment to keep our brands attractive. And there was significant work on the model's effectiveness. And that certainly paid off. And then a significant positive effect on Selective Retailing.

Speaker #1: Together with lower sales . But profit from operations sitting at 35% very high and much higher than the long group's term history . Watches and jewelry displayed a profit from recurring operations stable , even though there's a significant currency effect in other headwinds related to tariffs price of gold and and the cost of Tiffany's transformation .

Speaker #1: Significant capital expenditure there and but that plan is , as I said , bearing fruit , perfumes and cosmetics . As I was saying earlier on , there is an improvement So there's of 8% .

Speaker #1: Positive effect. We are being very selective in investment to remain, to keep our brands attractive. And there was significant work on the model's effectiveness.

Speaker #1: And that's certainly paid off . And then a significant positive effect on selective retailing . There are two effects . There . As I said , it's a forced which has performance , growing been both in terms of volume and margins .

Bernard Arnault: There are two effects there. As I said, it's the force performance, which has been growing both in terms of volume and margin. So a double effect there. But also, we were able to redress the balance for DFS. You may remember that we were losing hundreds of millions of EUR on DFS. Now we are breaking even at long last. Then if you look at the structure of our profit proper, starting with the gross margin, it's slightly down, down 80 basis points over the year. But in H2, it was up 40 basis points. There are two reasons for that. We found on a number of categories, there was some organic growth that made it possible to absorb costs. And there are a number of non-recurring factors that we had in 2024.

There are two effects there. As I said, it's the force performance, which has been growing both in terms of volume and margin. So a double effect there. But also, we were able to redress the balance for DFS. You may remember that we were losing hundreds of millions of EUR on DFS. Now we are breaking even at long last. Then if you look at the structure of our profit proper, starting with the gross margin, it's slightly down, down 80 basis points over the year. But in H2, it was up 40 basis points. There are two reasons for that. We found on a number of categories, there was some organic growth that made it possible to absorb costs. And there are a number of non-recurring factors that we had in 2024.

Speaker #1: So a double But effect there . also we were able to redress the DFS . You for may remember that we were losing hundreds of millions of euros on DFS , and we are even at long breaking last .

Speaker #1: then And if you look at the structure of our profit proper , starting with the gross margin is slightly down , down 80 basis points over But the year .

Speaker #1: In H2, it was up €40 billion. The two reasons for that, we found on a number of categories—there was some organic growth that made it possible to absorb costs.

Speaker #1: And a number there are of non-recurring factors that we had in 2020 for the currency effect. At the end of the year, it was higher than it was in H1, but the improvement of organic profit more than compensated that negative effect.

Bernard Arnault: The currency effect at the end of the year was higher than it was in H1. But the improvement of organic profit more than compensated that negative effect. Regarding operating expenses, they were down, down 4%. That reflects the agility, the responsiveness, the discipline of our team in a less favorable environment, but also our ability to manage costs and be more selective in our expenses. If you look at the development, general marketing expenses or selling expenses, you have selling and marketing. You have selling expenses were stable on a constant rate basis. Marketing expenses were down. But if you look at the ratio over the revenue, the ratio remained stable regarding marketing expenses. And then G&A were down 5%. There's a double effect there. There was, well, a cost-saving discipline. And then some costs of 2024 were non-recurring, in particular the Olympic Games that, of course, was non-recurrent.

The currency effect at the end of the year was higher than it was in H1. But the improvement of organic profit more than compensated that negative effect. Regarding operating expenses, they were down, down 4%. That reflects the agility, the responsiveness, the discipline of our team in a less favorable environment, but also our ability to manage costs and be more selective in our expenses. If you look at the development, general marketing expenses or selling expenses, you have selling and marketing. You have selling expenses were stable on a constant rate basis. Marketing expenses were down. But if you look at the ratio over the revenue, the ratio remained stable regarding marketing expenses. And then G&A were down 5%. There's a double effect there. There was, well, a cost-saving discipline. And then some costs of 2024 were non-recurring, in particular the Olympic Games that, of course, was non-recurrent.

Speaker #1: Regarding operating expenses . They were down , down 4% that reflects the agility the responsiveness , the discipline of our teams in what in less favorable environment , but also our ability to manage and be costs more selective in our expenses .

Speaker #1: If you look at . The development , general marketing expenses or selling expenses , you have selling and marketing , you have selling expenses with stable on the on a constant rate basis .

Speaker #1: Marketing expenses were down . if you But look at the ratio over the revenue , the ratio stable . remained Regarding marketing expenses and then were down 5% , there's a double effect there .

Speaker #1: There was well , a cost saving discipline and then some costs of 2024 were non-recurring in the particular , Games . That , of course , was non-recurrent .

Bernard Arnault: And now, if you look at all that, the profit from recurring operations stood at -9% at EUR 17.7 billion. If you look at other operating income and expenses, well, by definition, these are not recurring expenses. Now, here you have mostly costs related to the disposal of Greater China for DFS and a number of other markets for DFS. Now, that is an accounting expense. It has no cash effect. The financial profits, I'll get back to that in a moment, financial expense, rather. And then our tax stood at EUR 5.5 billion, up 4 percentage points. And that is, of course, that's the effect of the supposedly exceptional tax that is now being renewed. Anyway, there's this special tax in France for big companies. Anyway, the net profit group share stood at EUR 10.9 billion, down 13%. Si on regarde maintenant le résultat financier.

And now, if you look at all that, the profit from recurring operations stood at -9% at EUR 17.7 billion. If you look at other operating income and expenses, well, by definition, these are not recurring expenses. Now, here you have mostly costs related to the disposal of Greater China for DFS and a number of other markets for DFS. Now, that is an accounting expense. It has no cash effect. The financial profits, I'll get back to that in a moment, financial expense, rather. And then our tax stood at EUR 5.5 billion, up 4 percentage points. And that is, of course, that's the effect of the supposedly exceptional tax that is now being renewed. Anyway, there's this special tax in France for big companies. Anyway, the net profit group share stood at EUR 10.9 billion, down 13%.

Speaker #1: And now if you look at all that, the profit from recurring operations stood at minus 9% at €17.7 billion. If you look at other operating income and expenses...

Speaker #1: Well , by definition , these are not recurring expenses . Now , here you have mostly costs related to the disposal of Greater China for DFS and a number of other markets for DFS .

Speaker #1: Now, that is an accounting expense. This has no cash effect. The financial profit—I'll get back to that in a moment.

Speaker #1: Financial expense rather. And our tax at $5.5 billion, up four percentage points. And that is, of course, that's the effect of the supposedly exceptional tax.

Speaker #1: That was that is now being Anyway renewed . there's this special tax in France for big companies . Anyway , the net profit group shares stood at 10.9 billion , down 13% .

Cécile Cabanis: Si on regarde maintenant le résultat financier.

Bernard Arnault: Donc là, on a quatre résultats. Now, there are four lines there. The cost of net debt of EUR 348 million. So that was down, well, lower rates, but also lower volumes of debt outstanding for the year. The interest on lease liabilities, and that is the accretion expenses. And that's because of an accounting standard that is, as you may remember, IFRS 16. And because rates were up, that accretion expense was up. The cost of our currency hedging was stable, slightly increased in the context of highly volatile exchange rates. And of course, there are some currencies that suffered a decline vis-à-vis the euro. And then there is another issue of volatility in our net profit. And that is the fair value adjustment of our financial assets. Now, on these assets, there's a mark-to-market in accounting terms. So we have this adjustment at 31 December.

Donc là, on a quatre résultats.

[Translator]: Now, there are four lines there. The cost of net debt of EUR 348 million. So that was down, well, lower rates, but also lower volumes of debt outstanding for the year. The interest on lease liabilities, and that is the accretion expenses. And that's because of an accounting standard that is, as you may remember, IFRS 16. And because rates were up, that accretion expense was up. The cost of our currency hedging was stable, slightly increased in the context of highly volatile exchange rates. And of course, there are some currencies that suffered a decline vis-à-vis the euro. And then there is another issue of volatility in our net profit. And that is the fair value adjustment of our financial assets. Now, on these assets, there's a mark-to-market in accounting terms. So we have this adjustment at 31 December.

Speaker #1: Now there are four lines . There . The cost of net debt of 348 million . So that was down well . Lower .

Speaker #1: Rates that also lower volumes of debt for the outstanding year. The interest on lease liabilities, and that is the accretion expenses.

Speaker #1: of because an And accounting standards . That is , as you may remember , IFRS that's 16 . And because rates were up that accretion expense was up , the cost of our currency hedging was , slightly stable increased in the context of highly volatile exchange rates .

Speaker #1: And of course, there are currencies that suffered against the euro. And then, they decline vis-à-vis some others. There is another issue of volatility in our net profit.

Speaker #1: And that is the fair value adjustment of our financial assets . Now on on these assets , there's a mark to market in accounting terms .

Speaker #1: So we have this adjustment at 31st December. There was the 800 million. This has appreciation, so a positive effect on the result.

Bernard Arnault: There was an EUR 800 million appreciation. So this has a positive effect on the result. Now, these are unrealized capital gains. This is an accounting exercise. But this issue comes up. We assess these capital gains or losses, but this has no economic or cash effects. On the balance sheet, nothing new. The changes in exchange rates had an effect on most items of the balance sheet because they are denominated in euros, both on the assets and liability side. And because there was no major operation, very few mergers or acquisitions. There's not much change. Of course, there was the acquisition in Loro Piana, but we mentioned that earlier on. Other than that, nothing to mention. So a few words about operating free cash flow. As we said earlier on, it stood at EUR 11.3 billion, up 8%, even though profits were down.

There was an EUR 800 million appreciation. So this has a positive effect on the result. Now, these are unrealized capital gains. This is an accounting exercise. But this issue comes up. We assess these capital gains or losses, but this has no economic or cash effects. On the balance sheet, nothing new. The changes in exchange rates had an effect on most items of the balance sheet because they are denominated in euros, both on the assets and liability side. And because there was no major operation, very few mergers or acquisitions. There's not much change. Of course, there was the acquisition in Loro Piana, but we mentioned that earlier on. Other than that, nothing to mention. So a few words about operating free cash flow. As we said earlier on, it stood at EUR 11.3 billion, up 8%, even though profits were down.

Speaker #1: Now these are unrealized capital gains . These are this is an accounting exercise that this issue comes up . We assess these capital gains or losses .

Speaker #1: But this has no cash or effect on the sheet . economic Nothing balance new . The changes in exchange rates had an on most effect items of the balance sheet , because they are denominated in euros , both on the assets and liabilities side , and because there was no major operation .

Speaker #1: few Very mergers or acquisitions , there's not much . Of course , there was . The acquisition in Loro Piana , but we mentioned that earlier on .

Speaker #1: Other than , nothing to mention . A few words about operating flow . As we said free cash earlier on , it stood 11.3 billion , up 8% , even though profits at were down .

Bernard Arnault: That is because, as you can see, we managed WCR very carefully. We were very selective on capital expenditure. On the tax paid, this is down. That reflects the effects of provisional tax payments and the settlement of the final tax. But of course, lower profit. But there was the one big, beautiful bill act. You may remember that changed the depreciation schedule. And this had a positive cash effect for us. Capital expenditure accounted for 5.7% of sales. This is in line with our long-term historic average. And then, of course, there was a significant generation of cash flow reflecting our financial soundness, but also the group's responsiveness. We were able to generate more than adequate cash flow in a less favorable environment while still keeping capital expenditure where it should be to remain competitive.

That is because, as you can see, we managed WCR very carefully. We were very selective on capital expenditure. On the tax paid, this is down. That reflects the effects of provisional tax payments and the settlement of the final tax. But of course, lower profit. But there was the one big, beautiful bill act. You may remember that changed the depreciation schedule. And this had a positive cash effect for us. Capital expenditure accounted for 5.7% of sales. This is in line with our long-term historic average. And then, of course, there was a significant generation of cash flow reflecting our financial soundness, but also the group's responsiveness. We were able to generate more than adequate cash flow in a less favorable environment while still keeping capital expenditure where it should be to remain competitive.

Speaker #1: And that is because, as you can see, we managed WCR very carefully. We're very selective on capital expenditure on the tax paid.

Speaker #1: This is down; that reflects the effect of tax payments and settlement of the final tax. But of course, lower, there was the profit.

Speaker #1: the But one big bill you may . remember But that changed the depreciation schedule . And this had a effect for capital expenditure accounted for 5.7% of us sales .

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Q4 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call

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LVMH Moet Hennessy Louis Vuitton SE

Q4 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call

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LVMH Moet Hennessy Louis Vuitton SE

Q4 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call

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