The Arnault family has strengthened its control over luxury powerhouse LVMH, raising its voting stake to 65.94% amid a period of share price weakness in the global luxury sector.
Taking advantage of a downturn in LVMH stock during the ongoing luxury industry slowdown, the family has steadily accumulated additional shares — a move widely interpreted as a strong vote of confidence in the company’s long-term prospects.
The development comes as LVMH navigates a challenging global environment. At the end of January, the group reported revenue of €80.8 billion for 2025, marking a 5% year-on-year decline. The dip reflects softer demand in key markets, geopolitical tensions, and uneven consumer spending across regions.
However, there were signs of recovery as the year progressed. In the second half, LVMH recorded organic revenue growth of 1%, indicating stabilisation across its various business segments, including fashion, leather goods, wines and spirits, perfumes, cosmetics, and watches.
Despite the near-term pressures, Bernard Arnault remains optimistic. He emphasized that even in an uncertain macroeconomic climate heading into 2026, LVMH’s portfolio of maisons — renowned for craftsmanship and brand desirability — remains a critical competitive advantage.
Arnault highlighted that the group’s disciplined cost management, combined with its environmental and social commitments, will continue to reinforce its leadership in the global luxury market.
The increase in the Arnault family’s voting control sends a clear message to investors: while the luxury sector may be experiencing short-term turbulence, the long-term vision for LVMH remains firmly intact.
Leave a Reply