Fashion & Leather GoodsWide moat

LVMH (MC) — moat facet

The richest business LVMH has, two years into a decline and only just growing again.

Fashion & Leather Goods is most of LVMH's value. It brought in €37,770 million of revenue in 2025 and €13,209 million of profit from recurring operations, a margin of 35.0%.1 That was about 74.4% of the group's recurring profit.23

Fashion & Leather Goods revenue (€bn)€12.8bn2016€15.5bn2017€18.5bn2018€22.2bn2019€21.2bn2020€30.9bn2021€38.6bn2022€42.2bn2023€41.1bn2024€37.8bn2025LVMH annual results releases 2017-2025 and 2023 URD
More than tripled from 2016 to the 2023 peak, and has fallen 10% since.

The group contains Louis Vuitton, Christian Dior, Loro Piana, Celine, Loewe, Fendi, Givenchy, Rimowa, Berluti and others; LVMH discloses no figures for any maison alone.4 It sells almost entirely through its own shops: retail was 95% of the group's revenue in 2022, 2023 and 2024, wholesale 5%, through a network of more than 2,300 stores at the end of 2024.5

It has grown almost threefold in nine years. Revenue was €12,775 million in 2016 and profit €3,873 million, a margin of 30.3%.67 In 2020, when the group's revenue fell 17%, this one fell only 5%, 3% organically, and it grew 18% organically in the fourth quarter.8 By 2021 it had reached €30,896 million and a 41.6% margin, and revenue peaked at €42,169 million in 2023.910

Since then it has shrunk. Revenue fell 1% organically in 2024 and 5% in 2025, and profit fell from €16,836 million to €13,209 million, a margin of 35.0% against 39.9%.1112 The results release puts most of the 2025 decline in profit down to currency, and says 2024 had been lifted by tourist spending in Japan.13

Asia outside Japan is the largest market. It took 36% of the group's revenue in 2024, against 19% for Europe outside France, 17% for the United States and 12% for Japan.14

The latest half showed the turn but not yet the recovery. Revenue was €18,146 million in the first half of 2026, down 1% organically, with a return to organic growth of 1% in the second quarter; profit fell 7% to €6,195 million, a margin of about 34.1% against 34.7%.1516 LVMH credits Jonathan Anderson's first designs at Dior and Louis Vuitton's new flagships in Beijing and Seoul.17

The verdict is that this is still LVMH's richest business by a distance, and it is two years into a decline. The number to watch is its organic growth for the full year 2026: a positive figure would say the second quarter was a turn.

Moat trajectory: Holding steady

Organic growth returned in Q2 2026 (+1%) after two years of decline; profit still fell 7% in the half.

The number that tests this moat
Reported
Fashion & Leather Goods organic growth, latest quarter
+1% in Q2 2026, after −2% in Q1

A full year of positive organic growth in 2026 would confirm the turn; a relapse would make it three years of decline.

Source: LVMH first-half 2026 results release ↗
References
  1. ReportedIt brought in €37,770 million of revenue in 2025 and €13,209 million of profit from recurring operations, a margin of 35.0%.
    LVMH 2025 annual results release - revenue by business group with organic change, profit from recurring operations by business group, and business-group commentary, 2024 and 2025 — FY2024-FY2025 · publ. January 2026 · source ↗
  2. ReportedThat was about 74.4% of the group's recurring profit.
    LVMH 2025 annual results release - revenue by business group with organic change, profit from recurring operations by business group, and business-group commentary, 2024 and 2025 — FY2024-FY2025 · publ. January 2026 · source ↗
  3. Moat Explorer calcThat was about 74.4% of the group's recurring profit.
    Moat Explorer calculation from LVMH's annual results releases 2017-2025, the 2023 and 2024 URDs and the H1 2026 release: operating margins, shares of group profit and revenue, compound growth rates — FY2016 to H1 2026 · publ. 2026-09-23 · source ↗
  4. ReportedThe group contains Louis Vuitton, Christian Dior, Loro Piana, Celine, Loewe, Fendi, Givenchy, Rimowa, Berluti and others; LVMH discloses no figures for any maison alone.
    LVMH first-half 2026 results release - revenue by business group with organic change for the half and the second quarter, profit from recurring operations by business group, and business-group commentary — H1 2026 · publ. 27 July 2026 · source ↗
  5. ReportedIt sells almost entirely through its own shops: retail was 95% of the group's revenue in 2022, 2023 and 2024, wholesale 5%, through a network of more than 2,300 stores at the end of 2024.
    LVMH 2024 Universal Registration Document - business-group sections: revenue, profit, operating margin, revenue by region, type of revenue, store networks, Wines & Spirits revenue split and volumes, Diageo joint ventures, organic change by business group — FY2022-FY2024 · publ. March 2025 · source ↗
  6. ReportedRevenue was €12,775 million in 2016 and profit €3,873 million, a margin of 30.3%.
    LVMH 2017 annual results release - revenue and profit from recurring operations by business group, 2016 and 2017 — FY2016-FY2017 · publ. January 2018 · source ↗
  7. Moat Explorer calcRevenue was €12,775 million in 2016 and profit €3,873 million, a margin of 30.3%.
    Moat Explorer calculation from LVMH's annual results releases 2017-2025, the 2023 and 2024 URDs and the H1 2026 release: operating margins, shares of group profit and revenue, compound growth rates — FY2016 to H1 2026 · publ. 2026-09-23 · source ↗
  8. ReportedIn 2020, when the group's revenue fell 17%, this one fell only 5%, 3% organically, and it grew 18% organically in the fourth quarter.
    LVMH 2020 annual results release - revenue by business group with organic change for the year and the fourth quarter, and profit from recurring operations by business group, 2019 and 2020 — FY2019-FY2020 · publ. January 2021 · source ↗
  9. ReportedBy 2021 it had reached €30,896 million and a 41.6% margin, and revenue peaked at €42,169 million in 2023.
    LVMH 2023 Universal Registration Document - revenue and profit from recurring operations by business group, 2021-2023 — FY2021-FY2023 · publ. March 2024 · source ↗
  10. Moat Explorer calcBy 2021 it had reached €30,896 million and a 41.6% margin, and revenue peaked at €42,169 million in 2023.
    Moat Explorer calculation from LVMH's annual results releases 2017-2025, the 2023 and 2024 URDs and the H1 2026 release: operating margins, shares of group profit and revenue, compound growth rates — FY2016 to H1 2026 · publ. 2026-09-23 · source ↗
  11. ReportedRevenue fell 1% organically in 2024 and 5% in 2025, and profit fell from €16,836 million to €13,209 million, a margin of 35.0% against 39.9%.
    LVMH 2024 Universal Registration Document - business-group sections: revenue, profit, operating margin, revenue by region, type of revenue, store networks, Wines & Spirits revenue split and volumes, Diageo joint ventures, organic change by business group — FY2022-FY2024 · publ. March 2025 · source ↗
  12. ReportedRevenue fell 1% organically in 2024 and 5% in 2025, and profit fell from €16,836 million to €13,209 million, a margin of 35.0% against 39.9%.
    LVMH 2025 annual results release - revenue by business group with organic change, profit from recurring operations by business group, and business-group commentary, 2024 and 2025 — FY2024-FY2025 · publ. January 2026 · source ↗
  13. ReportedThe results release puts most of the 2025 decline in profit down to currency, and says 2024 had been lifted by tourist spending in Japan.
    LVMH 2025 annual results release - revenue by business group with organic change, profit from recurring operations by business group, and business-group commentary, 2024 and 2025 — FY2024-FY2025 · publ. January 2026 · source ↗
  14. ReportedIt took 36% of the group's revenue in 2024, against 19% for Europe outside France, 17% for the United States and 12% for Japan.
    LVMH 2024 Universal Registration Document - business-group sections: revenue, profit, operating margin, revenue by region, type of revenue, store networks, Wines & Spirits revenue split and volumes, Diageo joint ventures, organic change by business group — FY2022-FY2024 · publ. March 2025 · source ↗
  15. ReportedRevenue was €18,146 million in the first half of 2026, down 1% organically, with a return to organic growth of 1% in the second quarter; profit fell 7% to €6,195 million, a margin of about 34.1% against 34.7%.
    LVMH first-half 2026 results release - revenue by business group with organic change for the half and the second quarter, profit from recurring operations by business group, and business-group commentary — H1 2026 · publ. 27 July 2026 · source ↗
  16. Moat Explorer calcRevenue was €18,146 million in the first half of 2026, down 1% organically, with a return to organic growth of 1% in the second quarter; profit fell 7% to €6,195 million, a margin of about 34.1% against 34.7%.
    Moat Explorer calculation from LVMH's annual results releases 2017-2025, the 2023 and 2024 URDs and the H1 2026 release: operating margins, shares of group profit and revenue, compound growth rates — FY2016 to H1 2026 · publ. 2026-09-23 · source ↗
  17. ReportedLVMH credits Jonathan Anderson's first designs at Dior and Louis Vuitton's new flagships in Beijing and Seoul.
    LVMH first-half 2026 results release - revenue by business group with organic change for the half and the second quarter, profit from recurring operations by business group, and business-group commentary — H1 2026 · publ. 27 July 2026 · source ↗
Sources
Generated September 23, 2026