China’s luxury market shows signs of life as LVMH records uptick in sales
LVMH saw its sales in China rise in the second half of 2025, as the vast Chinese luxury market shows signs of recovery
The group reported on Tuesday that its total annual sales last year reached €80.8 billion (US$97 billion), down 5 per cent year on year on a reported basis. But performance improved in the second half of the year as sales returned to organic growth, rising 1 per cent.
This was partly driven by positive growth in most of Asia. While Japan saw sales decline, the rest of the region recorded a 1 per cent increase in sales during the fourth quarter.
“Performance among Chinese customers is broadly comparable to the third quarter, with the local market remaining positive,” said Cecile Cabanis, LVMH’s chief financial officer.
The group’s stock dropped over 7 per cent in early trading in Paris on Wednesday, after the results sparked investor concerns.
Analysts had been eagerly waiting for LVMH’s latest results in China to get a better sense of the luxury market’s trajectory. Sales figures released by other groups earlier this month had presented a mixed picture.
British brand Burberry reported 6 per cent year on year growth in China during the final quarter of 2025, up from 3 per cent the previous quarter. But Swiss group Richemont saw its sales growth in mainland China, Hong Kong and Macau slow to 2 per cent, down from 7 per cent in the third quarter.