LVMH’s Q4 Sales Beat Forecasts — But Is the Magic Fading?
Luxury behemoth LVMH surprised analysts with stronger-than-expected sales growth in the fourth quarter, signaling that it’s still very much in the game. Yet, in an industry where perception is everything, outperforming expectations doesn’t always mean outperforming the competition. Despite the boost, LVMH’s performance lagged behind rivals like Richemont and Burberry — a fact that raises questions about where the world’s biggest luxury group is heading next.
Still the Leader, But No Longer Untouchable
For years, LVMH has played the part of the invincible giant — gobbling up market share, dazzling with blockbuster campaigns, and riding a seemingly endless wave of demand for luxury goods. But recent quarters have shown cracks, or at least a slowing of momentum.
Yes, the fourth quarter numbers were better than forecast. That in itself is an achievement in today’s market, where global economic jitters and shifting consumer priorities have tempered luxury spending. Yet the broader picture reveals that other players in the space are catching up — and in some cases, pulling ahead.
The Competition Is Evolving
Richemont, parent company of Cartier and Van Cleef & Arpels, and Burberry, the British heritage brand undergoing its own stylish reinvention, have both turned in stronger relative performances lately. Their success lies in a more focused strategy: Richemont has doubled down on jewelry and high-end watches, while Burberry is leaning hard into its Britishness and fresh creative leadership.
LVMH, with its sprawling empire of fashion, cosmetics, wine, and watches, now finds itself needing more than size to maintain dominance. It needs to spark joy again — and not just in boardrooms.
Tapping Into Nostalgia
Enter Takashi Murakami.
The Japanese artist, whose colorful anime-style prints defined an era for Louis Vuitton in the early 2000s, is back in the fold. Nostalgic collaborations, especially those evoking the heyday of early-aughts luxury, are proving to be catnip for millennials and Gen Z — shoppers who crave both cultural cachet and emotional connection.
Pairing Murakami’s iconic motifs with Louis Vuitton’s leather goods may not be revolutionary, but it’s a smart way to stoke brand excitement without overhauling core products. These reissues also tap into the current mood: comfort in the familiar, playfulness in fashion, and the power of collective memory.
Celebrities Still Matter
LVMH hasn’t abandoned its proven formula of celebrity tie-ins either. With Rihanna, Pharrell Williams, and Zendaya among its arsenal of brand ambassadors and collaborators, the group knows how to engineer a media moment. Whether that always translates into long-term sales is another question — but the hype certainly buys time and attention.
However, the risk with star-studded campaigns is overexposure or audience fatigue. Today’s consumer — especially younger luxury buyers — is savvy, and increasingly values authenticity over spectacle. That puts pressure on LVMH to balance showmanship with substance, something its competitors are clearly doing more deftly at the moment.
What’s Next for LVMH?
The bottom line: LVMH is still the global leader in luxury, but the game is changing. The group’s diversified portfolio, from Louis Vuitton and Dior to Hennessy and TAG Heuer, remains a strategic strength. But in a market that’s cooling — and a culture that’s increasingly fragmented — growth won’t be automatic.
Nostalgia and celebrity collaborations may provide short-term energy boosts, but sustained success will come from reinvention, not repetition.
To keep its crown, LVMH will need to be both a tastemaker and a trend reader — and perhaps most importantly, it must stay emotionally relevant to a new generation of global shoppers.
