AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 2/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Maintained champagne share and Sephora's reported share gains alongside successful exclusive launches demonstrate current differentiation. This supports a strong brand-based advantage in selected businesses without inferring it from margins.
durability · 2/4 · Longstanding brand heritage, maintained share and renewed fashion demand support persistence, but the demonstrated demand slowdown and earnings deterioration limit confidence in durable group-wide protection.
customer dependency · 2/4 · Maintained champagne share and Sephora's gains indirectly indicate continuing customer preference. Dependence is limited by demonstrated demand weakness; no contractual lock-in or material switching friction is established.
erosion resilience · 2/4 · Share retention and 2026 fashion and jewelry growth show resilience, but substantial 2023–2025 revenue and profit declines establish meaningful vulnerability. Recovery is too short to demonstrate exceptional resistance.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Revenue, market share and product success do not isolate actual price changes or discounting. A stated value strategy is not evidence of realized pricing outcomes.
retention · 2/4 · Indirect operating evidence is mixed: champagne retained volume share and Sephora gained share, while Wines and Spirits experienced a multiyear demand slowdown. These demonstrate continuing demand without establishing customer-level repeat rates.
margin resilience · 2/4 · Group operating margin declined from 26.5% in 2023 to 22.0% in 2025, with gross-margin erosion. A 22.5% margin in first-half 2026 and improving Selective Retailing margins provide counterbalancing resilience. These outcomes do not identify pricing as the cause.
contractual freedom · — · The passages do not disclose customer pricing contracts, repricing rights or constraints on setting sales terms. Retail presence and brand ownership alone do not establish this criterion.
Predictability—
Five consecutive annual periods are required for predictability; the accepted history is incomplete.
Financial strength—
Missing required inputs: interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 94.94
- netDebtEbitGrade
- 86.49
- currentRatioGrade
- 66.72
- Debt / FCF (x)
- 1.35
- Net debt / operating income (x)
- 0.68
- Current ratio (x)
- 1.58
Capital allocation—
Missing required inputs: operatingReturn, dilution, sbcRevenue. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- cashConversionGrade
- 100.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 3/4 · Operating cash flow remained near €18.9 billion while operating investments declined and operating free cash flow rose to €11.3 billion in 2025. Net financial debt fell despite dividends and other capital outflows. This demonstrates funding discipline, although acquisition and investment returns are not established.
incentive alignment · 2/4 · Actual disclosed arrangements link half of CEO variable compensation to financial performance versus budget, and bonus-share vesting requires service and performance conditions. Existing plans use predominantly financial criteria. Qualitative discretion and absent detailed ownership, targets and vesting outcomes limit evidence of stronger alignment.
execution · 2/4 · Operating outcomes are mixed: group revenue and profit declined through 2025, while cash generation improved and fashion, jewelry and Selective Retailing showed recovery in 2026. The Greater China DFS sale was completed; other disclosed disposal agreements are not treated as completed. Attribution to management is indirect.
governance · 2/4 · Independent audit and governance committee members, a lead director and disclosed compensation oversight provide formal safeguards. Combined chairman and CEO roles concentrate authority. The absence of significant related-party transactions in 2025 is supportive but does not establish exceptional oversight effectiveness.
Evidence
LVMH’s champagne houses held their market share at 22% by volume, and updated their organization to boost efficiency while ensuring each Maison remained in control of its own management.
Business overview, Wines and Spirits, 2025 champagne market share · Retrieved 18/10/2026
The Maison saw further market share gains in many countries, consolidating its global leadership position.
First-half 2026 results, Selective Retailing, Sephora market-share gains · Retrieved 28/09/2026
It continued to enrich its unique selection of brands with a number of exclusive launches, including Rhode, which was a major success in North America and the United Kingdom.
First-half 2026 results, Selective Retailing, exclusive launches · Retrieved 28/09/2026
Revenue for Fashion & Leather Goods saw organic growth in the second quarter, with a rapid acceleration in the United States, despite the impact of the conflict in the Middle East.
First-half 2026 results, Fashion and Leather Goods, second-quarter organic growth · Retrieved 28/09/2026
The Watches & Jewelry business group recorded organic revenue growth of 11% in the second quarter, marking an acceleration.
First-half 2026 results, Watches and Jewelry, second-quarter organic growth · Retrieved 28/09/2026
2025 Universal Registration Document 1 HISTORY Although the history of the LVMH Group began in 1987 with the merger of Moët Hennessy and Louis Vuitton, the roots of the Group actually stretch back much further, to eighteenth‑century Champagne, when a man named Claude Moët decided to build on the work of Dom Pérignon, a contemporary of Louis XIV; and to nineteenth‑century Paris, famous for its imperial celebrations, where Louis Vuitton, a craftsman trunk‑maker, invented modern luggage.
History, origins of champagne and Louis Vuitton businesses · Retrieved 18/10/2026
Board of Directors Bernard Arnault Chairman and Chief Executive Officer Alexandre Arnault Antoine Arnault Delphine Arnault Frédéric Arnault Dominique Aumont Director representing employees Marie-Véronique Belloeil-Melkin Director representing employees Henri de Castries (1) Lead Director Sophie Chassat (1) Wei Sun Christianson (1) Clara Gaymard (1) Marie-Josée Kravis (1) Laurent Mignon (1) Marie-Laure Sauty de Chalon (1) Natacha Valla (1) Hubert Védrine (1) Advisory Board members Diego Della Valle Lord Powell of Bayswater Executive Committee Bernard Arnault Chairman and Chief Executive Officer Stéphane Bianchi Group Managing Director Maud Alvarez-Pereyre Human Resources Delphine Arnault Christian Dior Couture Nicolas Bazire Development and Acquisitions Pietro Beccari Fashion Group & Louis Vuitton Damien Bertrand Louis Vuitton Cécile Cabanis Finance Jean-Jacques Guiony Wines & Spirits Guillaume Motte Sephora Stéphane Rinderknech Hospitality Excellence & Beauty Jérôme Sibille General Administration & Legal Affairs Jean Baptiste Voisin Strategy General Secretary Marc-Antoine Jamet Performance Audit Committee Clara Gaymard (1) Chairman Laurent Mignon (1) Marie-Laure Sauty de Chalon (1) Natacha Valla (1) Compensation Committee Natacha Valla (1) Chairman Marie-Véronique Belloeil-Melkin Sophie Chassat (1) Marie-Josée Kravis (1) Sustainability & Governance Committee Henri de Castries (1) Chairman Sophie Chassat (1) Marie-Laure Sauty de Chalon (1) Hubert Védrine (1) Statutory Auditors Deloitte & Associés represented by Guillaume Troussicot and Bénédicte Sabadie Forvis Mazars SA represented by Jérôme de Pastors and Simon Beillevaire Statutory Auditor in charge of certifying sustainability information Deloitte & Associés represented by Guillaume Troussicot 2 Financial Documents - December 31, 2025 FINANCIAL HIGHLIGHTS Revenue ( EUR millions) 86,153 84,683 2023 2024 2025 80,807 Profit from recurring operations ( EUR millions) 22,802 19,571 2023 2024 2025 17,755 Stores ( number) 6,283 6,307 6,097 2023 2024 2025 Change in revenue by business group ( EUR millions and percentage) 2025 2024 2025/2024 Change 2023 Published Organic (a) Wines and Spirits 5,358 5,862 -9% -5% 6,602 Fashion and Leather Goods 37,770 41,060 -8% -5% 42,169 Perfumes and Cosmetics 8,174 8,418 -3% 0% 8,271 Watches and Jewelry 10,486 10,577 -1% 3% 10,902 Selective Retailing 18,348 18,262 0% 4% 17,885 Other activities and eliminations 671 504 - - 324 Total 80,807 84,683 -5% -1% 86,153 (a) On a constant consolidation scope and currency basis.
Financial highlights, 2023–2025 group and business-group revenue and recurring profit · Retrieved 28/09/2026
Sephora continued to grow. 1.2 Profit from recurring operations (EUR millions) 2025 2024 2023 Revenue 80,807 84,683 86,153 Cost of sales (27,279) (27,918) (26,876) Gross margin 53,528 56,765 59,277 Marketing and selling expenses (29,914) (31,002) (30,768) General and administrative expenses (5,934) (6,220) (5,714) Income/(Loss) from joint ventures and associates 75 28 7 Profit from recurring operations 17,755 19,571 22,802 Operating margin (%) 22.0 23.1 26.5 The Group’s gross margin came to 53,528 million euros, down 6% compared to the previous fiscal year; as a percentage of revenue, the gross margin was 66.2%, down 0.8 points with respect to 2024.
Income statement commentary, gross margin and operating margin · Retrieved 28/09/2026
Japan) 16 18 21 Other markets 16 15 14 Total 100 100 100 Profit from recurring operations (EUR millions) 1,016 1,356 2,109 Operating margin (%) 19.0 23.1 31.9 Highlights 2025 confirmed the slowdown in demand observed since 2023, following several exceptional years.
Wines and Spirits, profitability and demand slowdown since 2023 · Retrieved 18/10/2026
Conscious of the potential challenges on the horizon – as exemplified by tariffs in the United States, anti‑dumping measures in China and unfavorable exchange rates – the Maisons will take a pragmatic approach and focus on strengthening their fundamentals: their unique expertise, the exceptional quality of their products, the strength of their distribution networks and the desirability of their brands.
Wines and Spirits outlook, prospective tariff, antidumping and currency challenges · Retrieved 18/10/2026
In Selective Retailing, organic revenue growth was 5% in the first half of 2026 and the margin continued to grow.
First-half 2026 results, Selective Retailing organic growth and margin improvement · Retrieved 28/09/2026
Profit from recurring operations for the first half of 2026 came to €8.7 billion, equating to an operating margin that remained high at 22.5%.
First-half 2026 group recurring operating profit and operating margin · Retrieved 28/09/2026
EFFECT OF EXCHANGE RATE CHANGES (248) 80 (273) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV) (910) 1,749 420 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 15.1 9,269 7,520 7,100 CASH AND CASH EQUIVALENTS AT END OF PERIOD 15.1 8,359 9,269 7,520 TOTAL TAX PAID (4,901) (5,790) (6,106) Alternative performance measure The following table presents the reconciliation between “Net cash from operating activities” and “Operating free cash flow” for the fiscal years presented: (EUR millions) 2025 2024 2023 Net cash from operating activities 18,874 18,924 18,400 Operating investments (4,567) (5,531) (7,478) Repayment of lease liabilities (2,974) (2,915) (2,818) Operating free cash flow (a) 11,333 10,478 8,104 (a) Under IFRS 16, fixed lease payments are treated partly as interest payments and partly as principal repayments.
Cash flow statement, operating cash generation, investments, leases and free cash flow · Retrieved 28/09/2026
Net financial debt and equity (EUR millions or as %) 2025 2024 Change Long - term borrowings 12,418 12,091 327 Short - term borrowings and derivatives 7,940 10,724 (2,784) Gross borrowings after derivatives 20,358 22,815 (2,457) Cash, cash equivalents and current available for sale financial assets (13,502) (13,587) 85 Net financial debt 6,857 9,228 (2,371) Equity 68,949 69,287 (337) Net financial debt/Equity ratio 9.9% 13.3% 3.4 pts Total equity amounted to 68.9 billion euros as of end-December 2025, down 0.3 billion euros from year - end 2024.
Balance sheet commentary, net financial debt and equity · Retrieved 28/09/2026
FINANCING ACTIVITIES Interim and final dividends paid 15.4 (7,123) (7,322) (7,159) Purchase and proceeds from sale of minority interests (1,091) (173) (17) Other equity - related transactions 15.4 (1,634) (224) (1,569) Proceeds from borrowings 19 2,095 3,595 5,990 Repayment of borrowings 19 (4,228) (3,676) (3,968) Repayment of lease liabilities 7.2 (2,974) (2,915) (2,818) Purchase and proceeds from sale of current available for sale financial assets 14 59 (1) 144 Net cash from/(used in) financing activities (14,896) (10,716) (9,397) IV.
Cash flow statement, dividends, minority purchases, equity transactions and financing · Retrieved 28/09/2026
For the fiscal year ended December 31, 2025, the criteria used to determine variable compensation for the Chairman and Chief Executive Officer are broken down as follows: • 50% of total variable compensation depends on financial (quantifiable) criteria relating to growth in the Group’s revenue, operating profit and cash flow relative to the budget trajectory for the year in question; • 50% of the total variable compensation is based on criteria related to strategy , management, corporate social responsibility and sustainability , broken down as follows: – criteria related to strategy and management (qualitative): 70%; – criteria related to CSR and sustainability (quantifiable and qualitative): 30%.
Governance disclosures, fiscal 2025 CEO variable compensation criteria · Retrieved 18/10/2026
The vesting of bonus shares is subject to a continued service condition under which recipients must still be with the Group on the date the shares vest and subject to the achievement of performance conditions.
Governance disclosures, bonus-share service and performance vesting conditions · Retrieved 18/10/2026
For the plans in place starting in October 2022, these criteria are (i) 85% financial criteria and (ii) 15% non‑financial criteria relating to the Group’s social and environmental responsibility, and in particular are based on progress achieved in implementing the LIFE 360 program adopted by the Group in 2021.
Governance disclosures, financial and nonfinancial criteria for plans in place since October 2022 · Retrieved 18/10/2026
Board of Directors Bernard Arnault Chairman and Chief Executive Officer Alexandre Arnault Antoine Arnault Delphine Arnault Frédéric Arnault Dominique Aumont Director representing employees Marie-Véronique Belloeil-Melkin Director representing employees Henri de Castries (1) Lead Director Sophie Chassat (1) Wei Sun Christianson (1) Clara Gaymard (1) Marie-Josée Kravis (1) Laurent Mignon (1) Marie-Laure Sauty de Chalon (1) Natacha Valla (1) Hubert Védrine (1) Advisory Board members Diego Della Valle Lord Powell of Bayswater Executive Committee Bernard Arnault Chairman and Chief Executive Officer Stéphane Bianchi Group Managing Director Maud Alvarez-Pereyre Human Resources Delphine Arnault Christian Dior Couture Nicolas Bazire Development and Acquisitions Pietro Beccari Fashion Group & Louis Vuitton Damien Bertrand Louis Vuitton Cécile Cabanis Finance Jean-Jacques Guiony Wines & Spirits Guillaume Motte Sephora Stéphane Rinderknech Hospitality Excellence & Beauty Jérôme Sibille General Administration & Legal Affairs Jean Baptiste Voisin Strategy General Secretary Marc-Antoine Jamet Performance Audit Committee Clara Gaymard (1) Chairman Laurent Mignon (1) Marie-Laure Sauty de Chalon (1) Natacha Valla (1) Compensation Committee Natacha Valla (1) Chairman Marie-Véronique Belloeil-Melkin Sophie Chassat (1) Marie-Josée Kravis (1) Sustainability & Governance Committee Henri de Castries (1) Chairman Sophie Chassat (1) Marie-Laure Sauty de Chalon (1) Hubert Védrine (1) Statutory Auditors Deloitte & Associés represented by Guillaume Troussicot and Bénédicte Sabadie Forvis Mazars SA represented by Jérôme de Pastors and Simon Beillevaire Statutory Auditor in charge of certifying sustainability information Deloitte & Associés represented by Guillaume Troussicot 2 Financial Documents - December 31, 2025 FINANCIAL HIGHLIGHTS Revenue ( EUR millions) 86,153 84,683 2023 2024 2025 80,807 Profit from recurring operations ( EUR millions) 22,802 19,571 2023 2024 2025 17,755 Stores ( number) 6,283 6,307 6,097 2023 2024 2025 Change in revenue by business group ( EUR millions and percentage) 2025 2024 2025/2024 Change 2023 Published Organic (a) Wines and Spirits 5,358 5,862 -9% -5% 6,602 Fashion and Leather Goods 37,770 41,060 -8% -5% 42,169 Perfumes and Cosmetics 8,174 8,418 -3% 0% 8,271 Watches and Jewelry 10,486 10,577 -1% 3% 10,902 Selective Retailing 18,348 18,262 0% 4% 17,885 Other activities and eliminations 671 504 - - 324 Total 80,807 84,683 -5% -1% 86,153 (a) On a constant consolidation scope and currency basis.
Executive and supervisory bodies as of January 1, 2026, combined CEO/chair role and independent committee members · Retrieved 28/09/2026
32. RELATED‑PARTY TRANSACTIONS No significant related - party transactions occurred during the fiscal year.
Financial statement Note 32, related-party transactions · Retrieved 28/09/2026
S USTAINABILITY REPORT General information 32 2025 Universal Registration Document The objectives are set each year by the Compensation Committee, which is made up entirely of independent members except a Director representing the employees, who is not independent, and published when this compensation is allocated.
Governance disclosures, Compensation Committee composition and objective-setting process · Retrieved 18/10/2026
DFS sold its businesses in Greater China to China Tourism Group Duty Free; an agreement was also entered into to sell the Los Angeles and San Francisco airport concessions to Duty Free Americas, and to sell DFS Okinawa to Avolta.
First-half 2026 results, completed Greater China DFS sale and agreements for other disposals · Retrieved 28/09/2026
Limited review procedures have been carried out and the related report will be issued following the Board of Directors’ meeting.
First-half 2026 results, status of limited review procedures and related report · Retrieved 28/09/2026
