LVMH makes money by selling luxury goods, mostly through its own stores, across five business groups; Fashion & Leather Goods (Louis Vuitton, Christian Dior and others) is the engine, with €37,770 million of the group’s €80,807 million revenue and €13,209 million of its €17,755 million profit from recurring operations in fiscal 2025. The other four are Selective Retailing (Sephora, Le Bon Marché, DFS), Watches & Jewelry, Perfumes & Cosmetics and Wines & Spirits. The Arnault family group held 49.77% of the share capital and 65.89% of the voting rights, according to LVMH’s financial documents for 2025.
In fiscal 2025 it brought in €37,770 million of revenue and €13,209 million of profit from recurring operations, against €80,807 million and €17,755 million for the whole group.
02
It sells mostly through its own stores
LVMH reports that 95% of Fashion & Leather Goods revenue came from retail and 5% from wholesale in 2025. The group had 6,283 stores at 31 December 2025, which gives it control over price, presentation and customer data.
03
Selective Retailing is big but thin
Sephora, Le Bon Marché and DFS made €18,348 million of revenue in fiscal 2025 but €1,780 million of profit from recurring operations: the second-largest group by sales, far behind by profit.
04
Three smaller groups spread the bets
Watches & Jewelry (Tiffany, Bvlgari) made €10,486 million, Perfumes & Cosmetics €8,174 million and Wines & Spirits (Moët & Chandon, Hennessy) €5,358 million of revenue in fiscal 2025.
What changed in 2025-26
A down year in 2025
Revenue fell 5% as reported to €80,807 million in fiscal 2025 and 1% on an organic basis, with exchange rates taking off about 3 points. Profit from recurring operations fell 9% to €17,755 million and the operating margin slipped to 22.0% from 23.1%. Wines & Spirits profit fell 25% as cognac demand weakened.
A partial recovery in 2026, then China slowed
First-half 2026 revenue was €38,644 million, up 2% organically, with a 22.5% operating margin. For the first nine months revenue was €57,148 million, up 2% organically, but Fashion & Leather Goods fell 5% organically in the third quarter as demand in China slowed, while Selective Retailing grew 8%.
Pruning the portfolio
In January 2026 LVMH signed an agreement for China Tourism Group Duty Free to acquire DFS’s business in Greater China, including the Hong Kong and Macao Gallerias. On 1 September 2026 Marc Jacobs was sold to WHP Global, and LVMH said in October that most of DFS’s businesses had been sold.
AI at the counter, not in the product
LVMH’s 2025 outlook for Sephora mentions the global rollout of its skin scan and shade finder tools and new training tools for beauty advisors underpinned by technology and artificial intelligence. The luxury Maisons themselves still sell craftsmanship and stores; AI shows up first in beauty retail and clienteling.
LVMH business groups, fiscal 2025
Fashion & Leather Goods
Revenue / profit from recurring operations€37,770M / €13,209M
Example MaisonsLouis Vuitton, Christian Dior, Loro Piana, Celine
Selective Retailing
Revenue / profit from recurring operations€18,348M / €1,780M
Example MaisonsSephora, Le Bon Marché, DFS
Watches & Jewelry
Revenue / profit from recurring operations€10,486M / €1,514M
Example MaisonsTiffany & Co., Bvlgari, TAG Heuer
Perfumes & Cosmetics
Revenue / profit from recurring operations€8,174M / €727M
Example MaisonsParfums Christian Dior, Guerlain
Wines & Spirits
Revenue / profit from recurring operations€5,358M / €1,016M
Example MaisonsMoët & Chandon, Hennessy, Dom Pérignon
What it means for you
Investors: track Fashion & Leather Goods first; in fiscal 2025 it produced about three-quarters of profit from recurring operations.
Watch China and the US separately: the third quarter of 2026 showed growth in the US, Europe and Japan while China slowed.
Operators: note the model, own the store and the customer relationship; 95% of fashion revenue is retail, not wholesale.
Builders selling to luxury: start in beauty retail and clienteling, where LVMH already deploys AI tools, not in the core product.
Use profit, not revenue, to judge a business group: Selective Retailing is second by sales but far behind by profit.
The Business Engineer lens
LVMH shows a portfolio where one business group funds the rest and pricing power rests on owned stores and scarce brands. The Business Engineer’s view is that AI matters here mostly at the edges, in beauty retail and customer service, while the core moat stays physical: craft, stores and brand control.
By selling luxury goods, mostly through its own stores. Fashion & Leather Goods made €37,770 million of the €80,807 million group revenue in fiscal 2025 and €13,209 million of the €17,755 million profit from recurring operations.
What are LVMH's business sectors?
Five business groups: Fashion & Leather Goods, Selective Retailing, Watches & Jewelry, Perfumes & Cosmetics, and Wines & Spirits.
Who controls LVMH?
The Arnault family group, which held 49.77% of the share capital and 65.89% of the voting rights according to LVMH's financial documents for the year to 31 December 2025.
How is LVMH doing in 2026?
Revenue for the first nine months of 2026 was €57,148 million, up 2% on an organic basis, with Fashion & Leather Goods down 5% organically in the third quarter as demand in China slowed.
The complete explainer, cleaned up and reformatted for mobile.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
In short
LVMH makes most of its money selling luxury fashion and leather goods, mainly Louis Vuitton and Dior, through its own stores. In fiscal 2025 that business group brought in €37.8B of the group’s €80.8B revenue and €13.2B of its €17.8B profit from recurring operations. Sephora and DFS, wine and spirits, perfumes and cosmetics, and watches and jewellery make up the rest.
Watch (66 seconds): LVMH: where the money comes from, step by step, with captions. Figures from the filing named at the end.
What drives LVMH’s revenue
LVMH reports five business groups. Fashion & Leather Goods is the largest, at €37,770M in fiscal 2025, or 46.7% of revenue. LVMH says 95% of that group’s revenue comes from retail, meaning its own stores, and 5% from wholesale.
LVMH revenue by fiscal year, FY2021 to FY2025, from the company's filings. Chart: The Business Engineer.
Selective Retailing (Sephora, DFS, Le Bon Marché) brought in €18,348M. Watches & Jewelry (Tiffany, Bvlgari and others) took €10,486M, Perfumes & Cosmetics €8,174M and Wines & Spirits €5,358M. By region of delivery, the United States, Asia excluding Japan, and Europe including France each made up 26% of 2025 revenue.
How LVMH compares
Profit is far more concentrated than revenue. Fashion & Leather Goods earned €13,209M of profit from recurring operations at a 35.0% margin. Selective Retailing, the second-largest group by revenue, earned €1,780M at 9.7%. Perfumes & Cosmetics ran at 8.9%.
Against its own history, revenue is 26% above fiscal 2021 (€64,215M) but 6% below the fiscal 2023 peak of €86,153M. The group operating margin was 22.0% in 2025, down from 23.1% in 2024 and 26.5% in 2023.
Revenue fell 5% as reported and 1% on an organic basis. LVMH says currency movements took off 3 points, and that organic growth turned positive, at 1%, in the second half. Exchange rates cut €1,065M from profit from recurring operations.
LVMH revenue by line, prior year against FY2025, as reported. Chart: The Business Engineer.
Selective Retailing profit rose 28%. LVMH puts this down to Sephora and to DFS returning to break-even. Wines & Spirits profit fell 25% to €1,016M as cognac demand weakened. The effective tax rate rose to 32.8% because of an additional French tax. Net profit, Group share, fell 13% to €10,878M.
What to watch
Wines & Spirits cites tariffs in the United States, anti-dumping measures in China and unfavourable exchange rates as challenges ahead. Asia excluding Japan fell to 26% of group revenue in 2025, from 31% in 2023.
In January 2026 LVMH agreed to sell DFS’s Greater China business, including the Hong Kong and Macao Gallerias, to China Tourism Group Duty Free. The Fashion & Leather Goods margin has fallen two years running, from 39.9% in 2023 to 35.0% in 2025.
Frequently asked questions
How does LVMH make money?
Mainly by selling luxury fashion and leather goods through its own stores. In fiscal 2025 Fashion & Leather Goods made €37,770M of revenue (46.7% of the €80,807M total) and €13,209M of profit from recurring operations.
What was LVMH's revenue in 2025?
€80,807M for the year to 31 Dec 2025, down 5% from €84,683M in 2024 and down 1% on an organic basis.
Which LVMH business is most profitable?
Fashion & Leather Goods, with a 35.0% operating margin in fiscal 2025. Wines & Spirits came next at 19.0%, then Watches & Jewelry at 14.4%.
How much does Sephora contribute?
LVMH does not report Sephora on its own line. Sephora sits in Selective Retailing, which made €18,348M of revenue and €1,780M of profit from recurring operations in fiscal 2025. LVMH says Sephora has 80 million active members.
€17.8 billionLVMH's 2025 profit from recurring operations was €17.8 billion, an operating margin of 22%.lvmh.com
€10.9 billionLVMH's Group share of net profit for 2025 was €10.9 billion.lvmh.com
€38.6 billionLVMH recorded revenue of €38.6 billion in the first half of 2026.lvmh.com
€8.7 billionLVMH's profit from recurring operations in the first half of 2026 was €8.7 billion, an operating margin of…lvmh.com
In one lineLVMH's luxury model has long depended on scarcity, craftsmanship, and physical retail theater—exactly the dimensions AI is now reshaping.
LVMH is a global luxury empire with over €86 billion ($93 billion) in revenues for 2023, spanning several industries: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing. It comprises brands like Louis Vuitton, Christian Dior Couture, Fendi, Loro Piana, and many others.
Luxury Shoppers: Affluent consumers seeking high-quality, exclusive, and prestigious products. These customers value the craftsmanship, heritage, and exclusivity associated with LVMH’s brands.
Collectors: Individuals who purchase limited edition and exclusive items for their uniqueness and investment value.
Fashion Enthusiasts:
Trendsetters: Consumers who stay ahead of fashion trends and seek the latest collections from luxury brands. These individuals are typically younger, more digitally savvy, and highly influenced by social media and celebrity endorsements.
Brand Loyalists: Customers who have a strong affinity for specific LVMH brands and consistently purchase from them.
Global Consumers:
Geographic Diversity: LVMH’s brands cater to customers worldwide, including key markets in Europe, North America, Asia-Pacific, and emerging markets. Each region has its unique preferences and purchasing behaviors, which LVMH adapts to through localized strategies.
Revenue Streams
LVMH generates revenue through several channels:
Luxury Goods Sales:
Fashion and Leather Goods: Revenue from the sale of high-end apparel, handbags, shoes, and accessories under brands like Louis Vuitton, Dior, Fendi, and Givenchy.
Watches and Jewelry: Sales of luxury jewelry and watches under brands such as Bulgari, TAG Heuer, and Hublot.
Perfumes and Cosmetics: Revenue from perfumes, skincare, and cosmetics under brands like Parfums Christian Dior, Guerlain, and Benefit Cosmetics.
Wines and Spirits: Sales of premium wines and spirits, including Moët & Chandon, Dom Pérignon, Hennessy, and Veuve Clicquot.
Selective Retailing: Revenue from retail operations through Sephora and Le Bon Marché; LVMH said in October 2026 that most of DFS’s businesses had been sold.
Retail and E-commerce:
Direct Sales: Revenue from sales in owned retail stores and through the brands’ official online stores.
Wholesale: Income from selling products to third-party retailers, department stores, and boutiques.
Market Strategy
LVMH’s market strategy focuses on brand differentiation, digital transformation, and sustainability.
Brand Differentiation:
Distinct Brand Identities: Ensuring each brand in the portfolio maintains its unique identity, heritage, and market positioning. This approach allows LVMH to cater to diverse consumer preferences and reduces brand cannibalization.
Creative Direction: Hiring renowned designers and creative directors to lead each brand’s vision and design direction.
Digital Transformation:
E-commerce Expansion: Investing in robust e-commerce platforms for each brand to reach a global audience. E-commerce is a critical growth driver, especially in markets with high digital adoption rates.
Digital Marketing: Utilizing social media, influencer partnerships, and digital advertising to engage with consumers and promote collections. Digital marketing allows for targeted and measurable campaigns, enhancing customer engagement and brand loyalty.
Sustainability:
Environmental Responsibility: Implementing sustainable practices across the supply chain, including responsible sourcing, reducing carbon footprint, and using eco-friendly materials. Sustainability initiatives align with the growing consumer demand for ethical and environmentally friendly products.
Ethical Practices: Ensuring fair labor practices and transparency in production processes. Ethical business practices are essential for maintaining brand reputation and consumer trust.
Distribution Strategy
LVMH’s distributionstrategy involves a mix of direct-to-consumer and wholesale channels.
Direct-to-Consumer (DTC):
Flagship Stores: Luxurious brand stores in major cities worldwide that offer an immersive brand experience. Flagship stores serve as brand ambassadors, showcasing the latest collections and providing a premium shopping experience.
Online Sales: E-commerce websites for each brand, providing a seamless online shopping experience and exclusive online offerings. Online sales are supported by advanced logistics and customer service capabilities to ensure a high level of customer satisfaction.
Wholesale:
Department Stores and Boutiques: Partnerships with high-end department stores and specialty boutiques to distribute products widely. Wholesale partners are carefully selected to ensure alignment with the brand’s image and standards.
Authorized Retailers: Working with select retailers who meet the brand’s standards for luxury service and presentation. Authorized retailers expand the brand’s geographic reach and accessibility.
Competitive Advantages
LVMH’s competitive advantages lie in its strong brand portfolio, strategic acquisitions, and commitment to innovation and sustainability.
Strong Brand Portfolio:
Diverse Brand Range: A portfolio of renowned luxury brands catering to different market segments and consumer preferences. The diversity of brands allows LVMH to mitigate risks and capitalize on various market opportunities.
Market Leadership: Leading positions in key luxury segments such as fashion, leather goods, jewelry, and watches. LVMH’s brands are recognized for their quality, innovation, and desirability.
Strategic Acquisitions:
Targeted Acquisitions: Acquiring brands with strong growth potential and market positioning to enhance the portfolio. Strategic acquisitions enable LVMH to enter new market segments and strengthen its competitive position.
Brand Integration: Successfully integrating acquired brands into the LVMH ecosystem while preserving their unique identities. Effective integration maximizes synergies and enhances brandvalue.
Innovation and Sustainability:
Innovative Design: Continuously pushing the boundaries of design and creativity through collaboration with top designers. Innovation drives consumer interest and maintains the brands’ relevance in a dynamic market.
Sustainable Practices: Commitment to sustainability and ethical practices, which resonate with modern consumers and enhance brandvalue. Sustainability initiatives are integrated into the core business strategy, driving long-term growth and resilience.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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