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. Today, the LVMH Group is the world’s leading luxury goods company, the result of successive alliances among companies that, from generation to generation, have successfully combined traditions of excellence and creative passion with a cosmopolitan flair and a spirit of conquest. These companies now form a powerful, global Group in which the historic companies share their expertise with the newer brands, and continue to cultivate the art of growing while transcending time, without losing their soul or their image of distinction.

From the 14th century to the present

FINANCIAL HIGHLIGHTS

EXECUTIVE AND SUPERVISORY BODIES; Statutory Auditors AS OF February 9, 2026

(2)  Until the close of the Shareholders’ Meeting of April 23, 2026.

(3)  Independent Director.

(4)  Appointed by the SE Works Council on December 10, 2025, with effect from the close of the Shareholders’ Meeting on April 23, 2026.

(5)  Renewal of term of office as an Advisory Board member proposed at the Shareholders’ Meeting of April 23, 2026.

Simplified organizational chart of the group as of december 31, 2025

The organizational chart below is “simplified” insofar as its objective is to present the direct and/or indirect control structure of brands and trade names by the Group’s main holding companies, rather than a complete presentation of all Group shareholdings.

1.     Wines and Spirits

In 2025, revenue for the Wines and Spirits business group accounted for 7% of the LVMH Group’s total revenue. Champagne and wines made up 58% of this revenue, while cognac and spirits accounted for 42%.

1.1         Wines and Spirits brands

Moët & Chandon, Dom Pérignon, Ruinart, Krug, Veuve Clicquot, Hennessy, Château d’Yquem, Glenmorangie, Clos des Lambrays… The origins of all these world-famous estates are inextricably linked to the appellations and terroirs of the world’s most prestigious wines and spirits. Whether they are in Champagne, Bordeaux or other wine regions, these Maisons – many of which date back more than a century – all share a powerful culture of excellence.

1.2         Competitive position

1.2.1       Champagne

In 2025, shipments of LVMH champagne brands were down 4.3% from 2024, while shipments from the Champagne region decreased by 2.2% (source: CIVC). LVMH’s market share thus amounted to 22.1% of total shipments, compared to 22.6% in 2024.

Champagne shipments, for the whole Champagne region, break down as follows:

(Source: Comité Interprofessionnel du Vin de Champagne – CIVC).

1.2.2       Cognac

In 2025, volumes shipped from the Cognac region were down 15.2% from 2024 (source: BNIC), while volumes of Hennessy shipped saw a sharper decline, down 24.2%. Hennessy’s market share of volumes shipped from the Cognac region decreased by 5.7 points to 48% in 2025, from 54% in 2024. The Company remains a leader in cognac and premium international spirits in the United States, China and other important markets for cognac (South Africa, Nigeria, the United Kingdom, etc.).

Cognac shipments, in number of bottles, excluding bulk, both for the industry and for LVMH, are as follows:

(Source: Bureau National Interprofessionnel du Cognac – BNIC).

1.3         Primary production methods, supply sources and subcontracting

1.3.1       Champagne

The Champagne appellation covers a defined geographic area classified A.O.C. (Appellation d’Origine Contrôlée), which covers the 34,000 hectares that can be legally used for production. There are essentially three main types of grape varietals used in the production of champagne: Chardonnay, Pinot Noir and Meunier.

The Group owns 1,684 hectares under production, which provide 20% of its annual needs. In addition, the Group’s Maisons purchase grapes and wines from winegrowers and cooperatives on the basis of multi-year agreements; the largest supplier of grapes and wines represents less than 10% of total supplies for the Group’s Maisons. LVMH’s champagne houses, along with their partner grape suppliers, are steadily building up their use of sustainable winegrowing practices for Viticulture Durable en Champagne certification.

In addition to its effervescence, the primary characteristic of champagne is that it is the result of blending wines from different years and/or different varieties and land plots. The best brands are distinguished by their masterful blend and consistent quality, achieved thanks to the talent of their wine experts.

Weather conditions significantly influence the grape harvest from one year to the next. The production of champagne also requires aging in cellars for around two years, or even more for premium, vintage and/or prestige cuvées. To protect themselves against crop variations and manage fluctuations in demand, but also to ensure consistent quality year after year, LVMH’s champagne houses regularly adjust the quantities available for sale and keep reserve wines in stock, mainly in storage tanks. As maturation times vary, the Group constantly maintains champagne inventories in its cellars for future sales.

The making of champagne involves extremely rigorous processes in order to ensure absolute consistency in quality from year to year. Moët & Chandon fully operates its Mont Aigu site, with its vat room, bottling line, cellars, disgorging area and packaging workshop supplementing the production capacity of Moët & Chandon’s historic facilities in Épernay. The historic production sites of Veuve Clicquot, Ruinart and Krug are in Reims.

Dry materials (bottles, corks, etc.) and all other components of containers and packaging are purchased from non-Group suppliers. In 2025, the champagne houses also used subcontractors for about 44 million euros of services, notably pressing, co-packing, handling and storing bottles.

In order to drive innovation and develop expertise in its production processes, the Group inaugurated its research and development facility in Oiry in 2021, which is open to all its Maisons.

1.3.2       Cognac

The Cognac region is located around the Charente River basin. The vineyard, which currently extends over more than 85,000 hectares, consists almost exclusively of the Ugni Blanc varietal, which yields a wine that produces the best eaux-de-vie. This region is divided into six vineyards, each of which has its own qualities: Grande Champagne, Petite Champagne, Borderies, Fins Bois, Bons Bois and Bois Ordinaires. Hennessy selects its eaux-de-vie essentially from the first four vineyards, where the quality of the wines is more suitable for the preparation of its cognacs.

Charentaise distillation is unique because it takes place in two stages: a first distillation (première chauffe) and a second distillation (seconde chauffe). The eaux-de-vie obtained are aged in oak barrels. Cognac results from the gradual blending of eaux-de-vie selected on the basis of vintage, origin and age.

Hennessy – which carries out all of its production in Cognac – inaugurated a state-of-the-art bottling and packaging plant named Pont Neuf in 2017. The design of this 26,000-square-meter facility reduces its environmental footprint and optimizes working conditions to an extent never achieved previously.

Most of the cognac eaux-de-vie that Hennessy needs for its production are purchased from a network of approximately 1,600 independent producers, a collaboration which enables the Company to ensure that exceptional quality is preserved as part of an ambitious sustainable winegrowing policy. Hennessy directly operates about 180 hectares, providing for less than 1% of its eaux-de-vie needs.

With an optimized inventory of eaux-de-vie, the Maison can manage the impact of price changes by adjusting its purchases from year to year under the contracts with its partners. Hennessy continues to control its purchase commitments and diversify its partnerships to prepare for its future growth across the various quality grades.

Like the Champagne and Wine businesses, Hennessy obtains its dry materials (bottles, corks and other packaging) from non-Group suppliers. The barrels and casks used to age the cognac are also obtained from non-Group suppliers. Hennessy makes only very limited use of subcontractors for its core business: aging, blending and bottling eaux-de-vie.

1.3.3       Other wines and spirits

Outside of champagne and cognac, the Group owns a range of rare brands of spirits and still and sparkling wines whose quality and uniqueness relies on careful production and/or selection of raw materials, as well as long-standing expertise in complex development and aging processes that combine excellence, innovation and tradition.

1.4         Distribution

Moët Hennessy has a powerful and agile global distribution network, thanks to which the Wines and Spirits business group continues to expand the presence of its portfolio of brands in a balanced manner across all geographies. Part of this network consists of joint ventures with the Diageo ⁽¹⁾ spirits group, governed by agreements that have been in place since 1987, which help strengthen the positions of the two groups, improve distribution control, enhance customer service and increase profitability by sharing distribution costs. In 2025, 21% of champagne and cognac sales were made through this channel.

1.5         Highlights of 2025 and outlook for 2026

Highlights

2025 confirmed the slowdown in demand observed since 2023, following several exceptional years. The Wines and Spirits Maisons continued to invest in the long-term desirability of their brands and launched a program aimed at boosting efficiency and reducing costs.

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. Dom Pérignon launched a new marketing platform based on its historic links with artists and unveiled a limited edition designed in collaboration with Takashi Murakami. Moët & Chandon rolled out its new brand colors and enjoyed a high-profile presence as a key partner of Formula 1®’s Grand Prix races. It unveiled a limited edition by designer Pharrell Williams and special festive bottles wrapped in red and pink for the end-of-year holiday season. The Maison celebrated Benoît Gouez’s 20th anniversary as Cellar Master, presenting an edition comprised of seven outstanding Grand Vintage Collections and a bottle of Collection Impériale Création No. 1 designed for the occasion. Veuve Clicquot maintained its value strategy, with the launch of a new visual identity for its La Grande Dame 2018 cuvée and a creative collaboration with Jacquemus, which had a strong media impact. The Maison continued to roll out its Sun Club strategy, promoting new daytime opportunities to enjoy its products, in particular in Japan, Australia and France, and affirmed its support for women entrepreneurs through its Bold program. Ruinart confirmed the success of its flagship Blanc de Blancs champagne and raised the profile of its beautifully transformed site at 4 Rue des Crayères in Reims with an artistic program featuring Julian Charrière and Sam Falls. In October, Krug unveiled “Every Note Counts”, a new musical encounter launched in collaboration with composer Max Richter. In addition, the Maison confirmed the strength of its fundamentals and presented Krug Grande Cuvée 173^e Édition, Krug Rosé 29^e Édition and Krug Clos du Mesnil 2009.

Chandon received unprecedented acclaim for its expertise in sparkling wine and its commitment to sustainable agriculture, winning 86 awards and medals in five major international competitions. Chandon California also received Regenified™ (Level 4) regenerative agriculture certification. Still wines produced by Moët Hennessy Wine Estates performed well in a challenging economic environment. Provence rosé wines continued to outperform the rosé category worldwide. Château d’Esclans confirmed its global leadership, showing good resilience in the United States. Minuty saw a rapid pick-up in its key markets. Cloudy Bay continued to stand out as a benchmark in Sauvignon Blanc wines, achieving exceptional results in all regions. Terrazas de los Andes received excellent ratings from critics for the quality of its wines and confirmed the upmarket strategy of its portfolio. Napa Valley icon Joseph Phelps continued to strengthen its position in the United States with a second “Your Invitation to Acquire” campaign and the launch of its Insignia 2022 vintage. Ao Yun strengthened its position as the best red wine produced in China with the launch of its 2021 vintage.

Hennessy celebrated its 260th anniversary. The Maison raised its profile through collaborations with its powerful cultural ambassadors, as seen in the outstanding success of its “The Decision” campaign featuring LeBron James. However, the situation remained challenging in its two main markets – the United States and China – which were also held back by the introduction of new customs restrictions. In South Africa, Hennessy maintained its positive momentum, driven by a new chapter of the “Made for More” campaign. In 2025, the Maison stepped up its environmental and social commitments – a key component of its pursuit of excellence – with progress in the Living Landscapes program, the roll-out of positive impact initiatives via Living Communities and the renewal of its main international certifications.

Glenmorangie launched “Once Upon a Time in Scotland”, a major marketing campaign featuring legendary actor Harrison Ford. Ardbeg opened Ardbeg House on the Isle of Islay, a magnificent setting offering an immersive experience of the brand’s unique atmosphere. Belvedere vodka continued to ramp up its innovative momentum with the release of Belvedere Dirty Brew, a new blend crafted with certified organic coffee. Luxury vodka Belvedere 10 confirmed its leadership. Eminente rum ramped up its growth in Europe, fueled by the launch of Carta Oro.

Outlook

The Wines and Spirits business group is approaching 2026 with the same determination it showed in 2025, and will continue to invest in its Maisons and affirm its leadership in its key categories: cognac, champagnes, single malt whiskies and Provence rosé wines. 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.

2.     Fashion and Leather Goods

In 2025, revenue for the Fashion and Leather Goods business group accounted for 47% of LVMH’s total revenue.

2.1         Fashion and Leather Goods brands

In the luxury fashion and leather goods sector, LVMH holds a portfolio of brands that are primarily French, but also include Italian, Spanish, British, German and American companies.

The Fashion and Leather Goods business group comprises Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, Rimowa and Patou. While respecting the identity and autonomous management of these brands, LVMH supports their growth by providing them with shared resources.

Parfums Christian Dior, Perfumes Loewe, Parfums Kenzo and Parfums Givenchy are included in the Perfumes and Cosmetics business group.

2.2         Competitive position

In the Fashion and Leather Goods sector, the luxury market is highly fragmented, consisting of a handful of major international groups plus an array of smaller independent brands. LVMH’s brands are present all around the world, and it has established itself as one of the most international groups. All these groups compete in various product categories and geographic areas.

2.3         Design

Working with the best designers, while respecting the spirit of each brand, is a strategic priority: the creative directors promote the Maisons’ identities, and are the artisans of their creative excellence and their ability to reinvent themselves. As a means to continually renew this precious resource, LVMH has always been committed to supporting young designers and nurturing tomorrow’s talent, in particular through the LVMH Prize for Young Fashion Designers, which each year honors the work of an up-and-coming designer displaying exceptional talent and outstanding creativity.

LVMH believes that one of its essential assets is its ability to attract a large number of internationally recognized designers to its Maisons.

2.4         Supply sources, manufacturing and subcontracting

As of 2025, Louis Vuitton has twenty-nine workshops for finished leather goods – eighteen in France, four in Spain, four in the United States and three in Italy – which manufacture most of the Maison’s leather goods. In addition to manufacturing and model-making for leather goods, Louis Vuitton’s workshops in Italy handle all development and manufacturing processes for all types of footwear, as well as development for certain accessories (textiles, jewelry and eyewear). In addition to leather goods manufacturing, Louis Vuitton’s workshops in Spain also handle all leather goods accessories (belts and straps). Louis Vuitton uses external manufacturers only to supplement its manufacturing.

Louis Vuitton purchases its materials from suppliers located around the world, with whom the Maison has established long-term partnership relationships. The supplier strategy implemented over the last few years has enabled the Maison to meet its requirements in terms of volume, quality and innovation while engaging its suppliers in a CSR approach. This strategy is the result of a policy of focusing on and supporting the best suppliers while limiting Louis Vuitton’s reliance on them. Accordingly, the leading supplier in the leather market accounts for around 22% of Louis Vuitton’s leather supplies; the leading supplier in the metal parts market accounts for around 25% of its metal parts supplies.

Christian Dior’s production capacity and use of outsourcing vary very widely depending on the product. In leather goods, Christian Dior works with companies outside the Group to increase its production capacity and provide greater flexibility in its manufacturing processes. In ready-to-wear and jewelry, it purchases supplies primarily from non-Group businesses.

Most of the other Maisons in the Fashion and Leather Goods business group have workshops in their countries of origin or in Italy, which cover only a portion of their production needs. Furthermore, the LVMH Métiers d’Art segment protects and partly develops the Maisons’ access to raw materials and world-class expertise in leather goods and hardware.

Generally, the subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brand’s country of origin, France, Italy and Spain.

Lastly, fabric suppliers for the different Maisons are often Italian, but on a non-exclusive basis. The designers and style departments of each Maison ensure that manufacturing does not generally depend on patents or exclusive expertise owned by third parties.

2.5         Distribution

Controlling the distribution of its products is a core strategic priority for LVMH, particularly in the luxury Fashion and Leather Goods sector. This control allows the Group to retain retail margins, and guarantees strict control of the brand image, sales reception and environment that the brands require. It also gives the Group closer contacts with its customers so that it can better anticipate their expectations, thereby offering them unique shopping experiences.

In order to meet these objectives, LVMH has the premier international network of exclusive boutiques under the banner of its Fashion and Leather Goods brands. This network included around 2,300 stores as of December 31, 2025.

2.6         Highlights of 2025 and outlook for 2026

Highlights

The Fashion and Leather Goods business group showed good resilience with local customers with respect to 2024, which had been boosted by strong growth in tourist spending, particularly in Japan. Driven by a desire to offer their customers exceptional products and experiences, LVMH’s Maisons continued to pursue creativity, very high quality, masterful craftsmanship and retail excellence.

Louis Vuitton continued to demonstrate powerful creativity, exceptional craftsmanship and unique in-store experiences. Shows by Nicolas Ghesquière and Pharrell Williams took viewers on a memorable voyage, celebrating the spirit of travel and reimagining the Maison’s most iconic designs. The emblematic creative collaboration with Takashi Murakami made a vibrant comeback, with the « re-edition » collection at the start of the year featuring colorful designs created 20 years ago, and the new Artycapucines collection unveiled at Art Basel Paris. The Louis opened in downtown Shanghai in June. This spectacular space, in the shape of a cruise ship, redefines the luxury experience, with a one-of-a-kind store, fine dining at the Café Louis Vuitton and the immersive Visionary Journeys exhibition, reimagining the spirit of travel. A unique new cultural experience also opened at the end of the year in a multi-floor space in Seoul, celebrating the city’s singular fusion of tradition, culture, art and modernity. In September, the Maison unveiled La Beauté Louis Vuitton, its new cosmetics segment, led by globally acclaimed makeup artist Dame Pat McGrath. This collection reflects an approach that blends refinement, sustainability and exceptional craftsmanship. Louis Vuitton embarked on a new adventure in high-performance sports, becoming an Official Partner of Formula 1®. To mark this new partnership, the Maison created 24 unique trophy cases – one for each of the season’s Grand Prix races – illustrating the expert skills of its trunk-makers and leatherworkers. The Maison was featured at the France Pavilion during the World Expo in Osaka, where its immersive installation showcasing its craftsmanship and its close ties with Japan drew a record number of visitors. Its new campaign, “The Spirit of Travel”, shone a spotlight on its iconic luggage and China’s most fascinating landscapes.

Christian Dior embarked on a defining new chapter in its history, welcoming Jonathan Anderson as Creative Director of its Haute Couture, Men’s and Women’s collections. His first two shows were met with particularly high acclaim, attracting a record audience and garnering enthusiastic reviews. Jonathan Anderson won Designer of the Year for the third year running at the Fashion Awards 2025. For her final Dior Cruise collection, Maria Grazia Chiuri drew inspiration from Italian cinema and costume balls. Kim Jones’s final Dior Homme collection paid tribute to the Maison’s Haute Couture heritage. Victoire de Castellane’s latest jewelry designs were showcased in the new Diorexquis collection and new additions to the Rose des Vents line, which celebrated its 10th anniversary. In leather goods, Lady Dior elevated its desirability with a new marketing campaign and the well-received 10th edition of “Dior Lady Art”, with 10 artists reinterpreting the iconic bag. The range was further expanded with the successful launches of the Dior Toujours Vertical and D-Journey lines. Three major new store openings took place during the year: “House of Dior” locations embodying French elegance in the heart of Manhattan, New York and Beverly Hills, Los Angeles, and a stunning sculptural building in Beijing designed by Christian de Portzamparc in the new Sanlitun district. With its high-profile presence at the World Expo in Osaka, Christian Dior took visitors on a poetic odyssey through the Maison’s dreamlike universe, showcasing its legacy of expert craftsmanship. Lastly, the Maison carried on its beloved annual tradition of crafting spectacular façades and enchanting window displays to celebrate the end-of-year holiday season at 30 Avenue Montaigne and around the world.

Loro Piana turned in a remarkable performance, continuing to offer products of the highest quality. To celebrate its 100th anniversary, its first-ever exhibition was unveiled at the Museum of Art Pudong in Shanghai at the beginning of the year. In the second half of the year, to celebrate its ties to New York, the Maison staged a highly visible installation at Bergdorf Goodman and reopened its newly extended and magnificently redesigned New Bond Street store in London. An exceptional new fabric, Royal Lightness, was added to Loro Piana’s range of finest fibers, known as “Excellences”, and the Loro Highlands capsule collection paid tribute to equestrian elegance. Its partnership with Team Europe – winner of golf’s prestigious Ryder Cup – reflected the Maison’s steadfast commitment to the world of sports.

Celine saw an influx of promising new creative energy with the arrival of its new Creative Director, Michael Rider, whose first two shows received a warm welcome and raised the Maison’s profile. Its New Luggage and Soft Triomphe bags, unveiled at the Spring 2026 show, together with accessories (silk and charms), got off to a good start.

Fendi celebrated its centenary, hosting a coed runway show staged by Silvia Fendi at the Maison’s new “Solari” location in Milan, launching the iconic Mamma Baguette bag, unveiling its Eaux d’Artifice high jewelry collection and opening the striking Palazzo Milano store – a fusion of Roman heritage and Milanese design. Maria Grazia Chiuri was appointed Chief Creative Officer of Fendi in October.

Loewe’s first collection designed by Jack McCollough and Lazaro Hernandez was presented in October and enthusiastically welcomed by the press and buyers. The Maison showcased its powerful innovative momentum through striking reinterpretations of its iconic lines, including a collaboration with the Josef & Anni Albers Foundation and the launch of the Madrid bag in tribute to the city where it was founded. The 10th anniversary of the Puzzle line was celebrated through a range of initiatives. The store network expanded, with a first flagship store opening in Australia and new Casa Loewe stores in Shanghai, Paris’ Avenue Montaigne and Tokyo Ginza.

Marc Jacobs released an exclusive electric-pink version of the Maison’s signature Stephen Sprouse x Marc Jacobs Tote Bag. In the second half of the year, the Maison unveiled a creative collaboration for its limited-edition Joy capsule collection.

Givenchy held its first runway shows of collections designed by Sarah Burton, which were warmly welcomed by the press and customers alike, and recognized for their creativity at the British Fashion Awards. Women’s ready-to-wear saw growth after its collections arrived in stores at the end of August. A new flagship store opened on Rue François 1^er in Paris in July.

Kenzo presented its Men’s and Women’s shows separately for the first time in eight years, in January and March, respectively. The Spring/Summer 2026 collection was unveiled in June amid the Art Nouveau decor of legendary Parisian restaurant Maxim’s.

Berluti was boosted by demand for its iconic footwear designs, particularly the Alessandro, Fast Track and Shadow models, and by growth in ready-to-wear. The Maison continued to affirm its vision of the “remarkable allure” that has become its signature, embodied by Victor Belmondo. The visual enhancement of its store network continued.

Rimowa showcased the excellence of its hardshell luggage through a limited-edition suitcase designed in collaboration with Rick Owens, as well as its successful Original Backpack and initiatives featuring its Essential range. Other highlights of the year included the launch of a sunglasses collection in partnership with Mykita, the debut of the Maison’s new Groove line of leather bags and the redesigned Never Still line. The Maison continued to roll out its flagship stores in major international capitals.

Pucci presented its Spring/Summer collection in Portofino, highlighting its Italian identity and revisiting its iconic prints. Naomi Campbell starred in the campaign promoting its Fall/Winter collection.

Outlook

Driven by a determination to create supremely desirable collections and the highest-quality products, LVMH’s Maisons will continue to pursue creativity and masterful craftsmanship. Louis Vuitton will focus its attention in 2026 on its spirit of innovation and the ongoing pursuit of excellence through its designs and stores. New collections and dedicated window displays will celebrate the 130th anniversary of its legendary Monogram canvas. The Maison will continue to showcase its cultural vision, crafting dreams and ever more unique experiences for its customers. Balancing the Maison’s timeless legacy with contemporary reinvention, Christian Dior will continue to invest to keep on making the magic it is known for under its new Creative Director, Jonathan Anderson, whose first collections arrive in stores in the first quarter of 2026. The Cruise collection runway show will be held in May in Los Angeles. Loro Piana will open its newly renovated store in the heart of Vienna, Austria, before inaugurating a new store in Omotesando, Tokyo in the second half of the year. Celine will continue with the creative refresh of its Women’s collections, revisiting pieces that exemplify its signature chic and promoting its core leather goods lines. Celine’s new Men’s collection will be unveiled in June 2026. At Fendi, Maria Grazia Chiuri will unveil her first Women’s collection in Milan in February. The Maison will also return to the Haute Couture scene in July. Loewe is approaching 2026 with a highly dynamic innovation plan. The influx of fresh energy and creative direction driven by Jack McCollough and Lazaro Hernandez will inject fresh impetus into all of the Maison’s collections and designs. Three new flagship stores will open on Via Monte Napoleone in Milan, Rue du Faubourg Saint-Honoré in Paris and Madison Avenue in New York. Rimowa will celebrate the reopening of its flagship in Cologne, where the Maison was founded. Berluti will continue to renovate and selectively expand its store network, particularly in the Middle East.

3.     Perfumes and Cosmetics

In 2025, revenue for the Perfumes and Cosmetics business group came to 8,174 million euros, accounting for 10% of LVMH’s total revenue.

3.1         Perfumes and Cosmetics brands

LVMH is a key player in the perfume, makeup and skincare sector, with a portfolio of world-famous French brands, including Parfums Christian Dior, Guerlain, Parfums Givenchy and Kenzo Parfums. The Group also owns other beauty brands, including Benefit Cosmetics, Fresh, Acqua di Parma, Loewe Perfumes, Make Up For Ever, Maison Francis Kurkdjian, Fenty Beauty by Rihanna and Officine Universelle Buly.

3.2         Competitive position

LVMH’s Beauty division has maintained its global competitive position thanks to the success of its fragrances, particularly in Europe and the United States, and the recovery in makeup in the United States, despite the ongoing impact on the skincare market of the economic situation in China.

3.3         Research

Established in 1981, LVMH Recherche is a research and innovation center for the LVMH Group’s Perfumes and Cosmetics brands.

LVMH Recherche aims to shape the future of sustainable and digital beauty. Innovation is central to the Group’s commitment to offering unrivaled product performance, unprecedented sensory experiences and new uses by investing in key new areas for the future while taking into account social and environmental impacts.

Spread across five sites around the world (Hélios in Saint-Jean-de-Braye, Kosmo in Paris, and Asian innovation centers in Tokyo, Shanghai and Seoul), LVMH Recherche’s 670 employees (including researchers, chemists, biologists, toxicologists and pharmacists) deliver over 1,000 exceptional products every year in the skincare, makeup and fragrance categories. These very high-quality products are developed with the greatest respect for the environment and in keeping with each Maison’s sensory signature and unique identity.

Innovation and openness to the world are pillars of the strategy pursued by LVMH Recherche (400 patent families), which works with a number of public bodies (including universities, the French National Scientific Research Center [CNRS] and the French National Institute of Health and Medical Research [INSERM]) and private-sector organizations (notably startups, SMEs and mid-tier enterprises) in France and abroad. LVMH Recherche has gradually created a powerful innovation ecosystem whose aim is to identify the most promising technological advances and accelerate their development by building strategic partnerships in new scientific fields as varied as sustainable farming, biotechnology, cellular biology, advanced materials, new processes, big data and artificial intelligence.

3.4         Supply sources, production and subcontracting

The six French production centers operated by Parfums Christian Dior, Guerlain and LVMH Fragrance Brands meet almost all the manufacturing needs of the four major French Maisons. The other Maisons have some of their products manufactured by the Group’s other brands, with the remainder subcontracted externally.

Dry materials, such as bottles, stoppers and any other items that form the containers or packaging, are acquired from suppliers outside the Group, as are the raw materials used to create the finished products. In certain cases, these materials are available only from a limited number of French or foreign suppliers.

Most product formulas are developed at the LVMH Recherche laboratories in Saint-Jean-de-Braye (France), but the Group may also acquire or develop formulas from specialized companies.

3.5         Distribution and communication

The presence of a broad spectrum of brands within the business group generates synergies and represents a market force. The volume effect means that advertising space can be purchased at competitive rates, and better locations can be negotiated in department stores. The use of shared services by subsidiaries increases the effectiveness of support functions for worldwide distribution and facilitates the expansion of the newest brands and their access to new markets. These economies of scale permit larger investments in design and advertising, two key factors for success in the Perfumes and Cosmetics business group.

The Group’s Perfumes and Cosmetics brand products are sold worldwide, mainly through “selective retailing” channels (as opposed to mass-market retailers and drugstores), although certain brands also sell their products in their own stores and on their own e-commerce sites. Excellence in retailing is key to the Group’s Perfumes and Cosmetics Maisons. It requires expertise and attentiveness from beauty consultants, as well as innovation at points of sale. As of December 31, 2025, the network of directly operated Perfumes and Cosmetics stores consisted of over 700 stores.

To meet the expectations of younger generations, who are looking for originality, as well as demand for a connected in-store and online experience, all brands are accelerating the implementation of their online sales platforms, particularly on their own sites, and stepping up their digital content initiatives. Our brands are actively incorporating digital tools to enhance the customer experience and attract new consumers.

3.6         Highlights of 2025 and outlook for 2026

Highlights

Maintaining a robust innovation policy and a highly selective retail approach, the Perfumes and Cosmetics business group continued to demonstrate the strength of its Maisons and the relevance of their market positioning.

Parfums Christian Dior showed outstanding resilience in the face of a volatile economic environment and a cyclical slowdown in the market. The Maison strengthened its leadership position in its strategic markets, buoyed by the performance of its iconic lines. Sauvage retained its place as the world’s best-selling fragrance, while Dior Homme, reinterpreted by Francis Kurkdjian, maintained its strong momentum. Iconic women’s fragrances J’adore and Miss Dior continued to grow, in particular thanks to the new version of J’adore Eau de Parfum and the successful launch of the new Miss Dior Essence. La Collection Privée experienced robust growth in all markets. Makeup was driven by the success of innovative additions to the flagship Forever, Rouge Dior, Dior Addict and Backstage ranges. Skincare was boosted by the launch of Dior Prestige Les Nectars de Rose as well as by innovations and a revamped marketing campaign for the Capture line. Honoring its purpose of “Making the world a happier, more beautiful place”, Parfums Christian Dior increased the use of regenerative agriculture techniques for the flowers and plants grown to produce its fragrances and highlighted its commitment to protecting biodiversity, in particular via partnerships with WWF.

Guerlain confirmed the acceleration in its major markets, in particular the Middle East, Japan, South Korea, South Asia, Europe and the United States. Fragrance was the Maison’s main growth driver, buoyed by the success of Florabloom in the Aqua Allegoria collection, Shalimar L’Essence – celebrating the Shalimar line’s 100th anniversary – and the L’Art et La Matière collection. Innovations in its Abeille Royale serum and Rouge G lipstick also helped drive growth. The Maison also continued to champion sustainable beauty, with notable initiatives in 2025 including the launch of the first cellulose-based packaging for its Orchidée Impériale Blue skin cream and the development of the Women for Bees program in China.

Parfums Givenchy focused on promoting its iconic lines, in particular its L’Interdit women’s fragrance, which was boosted by the launch of the new L’Interdit Parfum version. The Maison also unveiled a new interpretation of its Gentleman Society Ambré men’s fragrance, with Formula 1® driver Pierre Gasly as its ambassador. Makeup was driven by the new Prisme Libre Glow Serum foundation and the success of Le Rouge Velvet Matte lipstick, whose design echoes the brand’s couture heritage. Benefit’s innovative momentum was exemplified by the launch of its new POREfessional foundation, which became an instant bestseller, marking the Maison’s strategic entrance into the largest makeup category. Maison Francis Kurkdjian continued its international expansion, including two new stores in the United States. The Maison launched its new Kurky fragrance and the My Very Intimate Perfumes collection. It also stepped up marketing for its iconic Baccarat Rouge 540, for which it unveiled the Édition Millésime version, encased in a Baccarat crystal bottle. The Perfume: Sculpture of the Invisible exhibition at the Palais de Tokyo in Paris looked back at 30 years of Francis Kurkdjian’s creations. Loewe Perfumes confirmed its solid growth path, driven by the excellent performance of its iconic Botanical Rainbow line and an acceleration in its already strong international growth. The year also saw the launch of the Crafted Collection, a series of three new fragrances celebrating the Maison’s expert craftsmanship. Acqua di Parma reaffirmed its Italian heritage through its fragrances and its traditional craftsmanship. The Maison unveiled two new eaux de parfum: Colonia Il Profumo and Buongiorno, with the latter becoming its greatest ever success. Its Art of Living range was enriched with the La Terrazza Italiana and Antelao collections. Make Up For Ever broke new ground with the launch of its Super Boost range, new additions to HD Skin and the success of its Artist Color pencils. Kenzo Parfums expanded its range with the new Flower and Kenzo Homme Indigo fragrances, as well as the relaunch of the unisex L’Eau Pure fragrance, which reflects the Maison’s commitment to sustainability. Fresh refocused its strategy on showcasing its fundamentals, reaffirming the importance of natural ingredients as nutrients for skin, and concentrated its initiatives on the United States and China, both key markets for skincare. Fenty Beauty continued its expansion in China and the rollout of its haircare range. Officine Universelle Buly opened two new stores in Paris and its 21st store in Japan. The Maison unveiled a number of innovations, including new scents for its oils and soaps as well as the Baume des Muses Métallique, an exceptional piece that artfully combines accessories and cosmetics.

Outlook

In 2026, LVMH’s Maisons will continue to invest in their strengths, focusing on innovation and excellence in their products, their desirability and a selective approach to their retail networks. Parfums Christian Dior will build on the vibrancy of its iconic lines, further innovation for ever more effective products, its ongoing quest for excellence and an increasingly selective retail approach. The Maison will also capitalize on close collaboration with Dior Couture and the arrival of JW Anderson. Guerlain will benefit from additions to its fragrance lines. Parfums Givenchy will focus on promoting its iconic L’Interdit, Gentleman and Irresistible lines, and on accelerating the development of its niche fragrances in La Collection Particulière. A launch in the lip segment will boost the makeup category. At Kenzo Parfums, the year will see marketing initiatives focused on the Maison’s iconic lines, in particular Flower by Kenzo. Benefit aims to strengthen its position in the foundation category and maintain its global leadership in brow beauty thanks to major innovations. Maison Francis Kurkdjian intends to consolidate its positioning in its key markets, and will continue to support the cornerstones of its fragrance wardrobe. Building on the success of its exhibition in Paris, the Maison aims to extend the exhibition to locations outside France. Loewe Perfumes will continue its international expansion, crafting an ever more exclusive customer experience. Acqua di Parma will celebrate its 110th anniversary with a tribute to the city of Parma and the launch of a travelling exhibition. Make Up For Ever will roll out its new brand identity to all its customer touchpoints. Fresh will continue to showcase its expertise and will innovate to enhance its iconic Soy and Kombucha lines. Fenty Beauty will celebrate its ninth anniversary and consolidate its positioning. Officine Universelle Buly will build on its growing international presence, opening new, high-profile locations in Europe and Japan.

4.     Watches and Jewelry

In 2025, revenue for the Watches and Jewelry business group accounted for 13% of LVMH’s total revenue.

4.1         Watches and Jewelry brands

LVMH’s Watches and Jewelry Maisons are some of the most emblematic brands in the industry. They operate in jewelry and watches with Tiffany & Co., Bvlgari, Chaumet, Fred, TAG Heuer, Hublot, Zenith, Repossi and L’Epée 1839. These Maisons are guided by a steadfast pursuit of excellence, creativity and innovation.

4.2         Competitive position

The jewelry market is highly fragmented, consisting of a handful of major international groups plus an array of smaller independent brands and companies from many different countries.

The watchmaking market consists of major international players and is divided into a number of segments including traditional watches and smartwatches. The luxury watch market consists of a handful of major international groups as well as smaller independent brands.

LVMH’s brands are present all around the world, and it has established itself as one of the international leaders.

4.3         Design, supply sources, manufacturing and subcontracting

The Watches and Jewelry group designs most of its models in its own studios, but may also sometimes use third parties.

At its Swiss workshops and manufacturing centers, the Group assembles a substantial proportion of the watches and chronographs sold under the TAG Heuer, Hublot, Zenith, Tiffany & Co., Bvlgari and Chaumet brands; it also designs and manufactures mechanical movements such as El Primero and Elite by Zenith, Heuer 02 by TAG Heuer, Unico by Hublot and Solotempo by Bvlgari; and it manufactures some critical components such as dials, cases and straps.

The Group’s jewelry businesses mainly rely on multi-brand or mono-brand production sites in France, Italy and the United States. Furthermore, Tiffany & Co. is also involved in the upstream diamond processing chain, particularly in Belgium, Cambodia and Vietnam.

The subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brand’s country of origin, the United States, Italy, France and Switzerland.

4.4         Distribution

The business group, which enjoys a strong international presence, has reaped the benefits of its excellent coordination and pooling of administrative, sales and marketing teams. A worldwide network of multi-brand after-sale services has been gradually put in place to improve customer satisfaction. LVMH Watches and Jewelry has a territorial organization that covers all markets.

The business group is focusing on the quality and productivity of its retail networks and on developing its online sales. It selects multi-brand retailers very carefully and builds partnerships so that retailers become genuine brand ambassadors when interacting with end-customers. In an equally selective approach, the Maisons also continue to refurbish and open their own directly operated stores in buoyant markets in key cities.

The Watches and Jewelry brands’ directly operated store network comprised 969 stores as of year-end 2025 at prestigious locations in the world’s largest cities.

4.5         Highlights of 2025 and outlook for 2026

Highlights

For the Watches and Jewelry business group, the priority remained focused on innovating, showcasing its icons, enhancing the desirability of collections and pursuing quality-driven retail development. Managing expertise was another key priority.

Tiffany & Co. continued to focus on its iconic lines as part of its elevation strategy. Hardwear and Knot in particular experienced strong growth. The Maison’s portfolio of iconic pieces was enriched with the Sixteen Stone collection and the Bird on a Rock line, launched in August, whose very good performance attested to the growing desirability of its designs. Tiffany & Co. had a record year in high jewelry. The Blue Book 2025 Sea of Wonder high jewelry collection was a major success. The collection showcased Tiffany & Co.’s powerful creativity, infused with the rich heritage handed down by its first designer, Jean Schlumberger. Tiffany won two awards (the Jury’s Special Prize and the Heritage Prize) at the first Grand Prix de la Haute Joaillerie in Monaco, in recognition of the Maison’s past and present excellence in jewelry-making. The program aimed at renovating locations and rolling out the new store concept continued, illustrated by two magnificent achievements: the Maison’s first flagship store in Europe, on Via Monte Napoleone in Milan, which received the Prix Versailles, followed by the Tokyo Ginza flagship. Renovated stores – which account for nearly a third of the total network since Tiffany & Co. joined LVMH – showed solid growth, as did The Landmark on New York’s Fifth Avenue, which achieved steady growth for the third consecutive year.

Bvlgari achieved another record year. 2025 kicked off with the Year of the Snake festivities in Shanghai and a large-scale art exhibition featuring the work of Chinese and international artists. The new Polychroma high jewelry collection, unveiled in Italy, China, Japan, the United States and the Middle East, generated record sales of multi-million-dollar pieces. The Kaleidos exhibition at Tokyo’s National Art Center showcased the Maison’s creative universe and its unique expertise in colored gemstones. New collections were added to each of its three major iconic lines (Serpenti, Divas’ Dream and B.zero1). The Octo Finissimo Ultra Tourbillon timepiece – which set a new record for the world’s thinnest tourbillon watch – and the new Serpenti Aeterna collection of jewelry watches were presented at the Watches and Wonders trade show. New flagship stores were opened in Milan, Los Angeles, Miami, Tokyo and Riyadh, boosting sales momentum in these key markets. Bvlgari inaugurated its expanded Valenza site, which became the world’s largest and most sustainable jewelry manufacturing facility, powered entirely by renewable energy.

For the first year of its partnership with Formula 1, TAG Heuer returned as official timekeeper and extended its contract with the Red Bull Racing team and its four-time world champion driver Max Verstappen. The new “Designed to Win” marketing campaign was launched, showcasing the brand’s ties to the world of sports. The Maison expanded its range with new high-end editions of the iconic Monaco and Carrera, featuring split-second and flyback complications, and, at the end of the year, chronometers equipped with a proprietary carbon-composite hairspring, a revolutionary innovation by TAG Heuer. The Maison took back direct control over its distribution in South Korea and Mexico.

For the 20th anniversary of its Big Bang collection, Hublot released a limited edition of five exceptional models fusing the design of the original watch with that of the current Big Bang Unico. Following the Watches and Wonders trade show, anniversary celebrations continued throughout the year, with Kylian Mbappé and Usain Bolt making appearances at Dubai Watch Week and Art Basel Miami. The new “Own It” marketing campaign was launched in May. The MP-17 Meca-10 Arsham Splash, designed in collaboration with American artist Daniel Arsham, was unveiled in October in Singapore.

Zenith commemorated its 160-year history, unveiling the G.F.J. chronometer, a tribute to its founder reflecting the Maison’s historic contribution to watchmaking excellence. The design won the Chronometry Prize at the 25th Geneva Watchmaking Grand Prix. Meanwhile, Zenith continued to modernize its unique manufacturing facility in Le Locle.

Faithful to its pioneering spirit, L’Epée 1839 revisited the Swiss cuckoo clock, breathing new life into this quintessential symbol of Switzerland’s clockmaking tradition.

Chaumet developed its emblematic Bee de Chaumet jewelry line, which performed well. Embodying its legacy as a jeweler inspired by nature, the Maison unveiled its Jewels by Nature high jewelry collection at an inaugural event held in Marbella, Spain, before continuing its world tour. These ties to the natural world were also celebrated in “Ode to Living Nature”, an experience presented at the World Expo in Osaka, which drew over one million visitors. The Maison underscored its commitment by entering into a partnership with WWF and launching its first jewelry made from 100% responsibly sourced, traceable gold.

Fred focused on injecting fresh energy into its iconic collections: Force 10 enjoyed major success with the launch of Force 10 Rise and the extension of its partnership with the French Open, while Chance Infinie developed a new aesthetic. The Maison cemented its positioning as the “Sunshine Jeweler”, unveiling new high jewelry pieces in two collections: 1936 and Soleil d’Or Sunrise. It continued to expand its retail network.

Repossi launched the new Blast jewelry collection and strengthened its ties with contemporary art through a collaboration with American artist Sterling Ruby. The Maison expanded significantly in Asia during the year, notably in South Korea and Japan.

Outlook

Building on their success, the Maisons will continue to make targeted investments in innovation, the development of their iconic lines, desirability and in-store excellence. In 2026, Tiffany & Co. will continue to deliver on its elevation strategy built around its iconic lines as well as renovating its stores, with the aim of continuing to enhance its desirability and the quality of its customer experience. A varied program of events will highlight the Maison’s exceptional creativity, heritage and craftsmanship. Bvlgari will focus on renovating its most iconic stores and expanding its range in its signature lines. The Maison will launch a high jewelry collection in Milan in March. In watchmaking, two new models will join the Serpenti collection and the Octo Finissimo watch will receive a major upgrade. TAG Heuer will focus on chronographs and partnerships with Formula 1. The Maison will unveil major innovations in mechanical movements in its Monaco and Carrera collections and open a new case-making facility in Cornol, Switzerland. Hublot will celebrate its partnership with UEFA at the Champions League final and add to its Big Bang and Classic Fusion collections. Zenith will bring fresh innovations to its Chronomaster and G.F.J. lines. Chaumet will unveil a new, nature-inspired high jewelry collection. Fred will celebrate its 90th anniversary by launching the Monsieur Fred Golden Light high jewelry collection and promoting its iconic lines. Repossi will celebrate the 40th anniversary of its arrival on Place Vendôme and open a store in London.

5.     Selective Retailing

In 2025, revenue for the Selective Retailing business group accounted for 23% of LVMH’s total revenue.

The Selective Retailing business group comprises Sephora, the world’s leading selective beauty retailer; Le Bon Marché, a Paris department store with a unique atmosphere; and travel retailer Duty Free Shoppers (DFS), which caters specifically to international travelers.

5.1         Competitive position

Distribution in the beauty sector is highly fragmented, served by major specialist retail chains, department stores, websites and independent perfume retailers.

5.2         Distribution and digitalization

Sephora markets beauty products. Its stores are organized around dedicated spaces for perfume, makeup, skincare and haircare, and services. Customers are free to try products out and beauty advisers are on hand to provide personalized recommendations. The quality of this concept has enabled Sephora to gain the confidence of perfume and cosmetics brands.

With its distribution network of 2,242 stores present in 35 countries as of December 31, 2025, its websites, mobile apps and strong social media presence, the Maison creates an omnichannel beauty experience that is increasingly innovative and personalized and offers customers an interactive, flexible, seamless shopping journey.

DFS has developed its business through partnerships with international tour operators and major luxury brands. Through its airport concessions and its city-center Galleria stores, which currently account for about two-thirds of its revenue, DFS is particularly present in the United States and at tourist destinations in the Asia-Pacific region.

5.3         Highlights of 2025 and outlook for 2026

Highlights

Sephora once again posted solid revenue growth in 2025, against a particularly high basis of comparison. At DFS, initiatives to streamline operations helped improve profitability, despite business activity still being held back by prevailing international conditions.

Sephora turned in a solid performance, continuing to gain market share and reaffirming its powerful brand and its effective, resilient business model. Growth was particularly strong in Europe, the Middle East and Latin America. Business continued to grow in North America. In a still challenging Chinese market, the strategic focus was on further differentiating Sephora’s range of products and services, particularly in makeup, as well as building loyalty and enhancing the in-store experience. These initiatives yielded very encouraging outcomes as store traffic gradually picked up.

Makeup remained the top category by sales volume, followed by skincare, fragrance and haircare. Fragrance, meanwhile, showed the strongest momentum thanks to a number of product innovations and new applications, such as mists and layering. Exclusive brands, which made up nearly half the brand portfolio, were the most significant source of growth. Rhode – the “native online” makeup and skincare brand founded by Hailey Bieber, launched in North America followed by the United Kingdom – was Sephora’s biggest-ever launch. The Maison also continued with its partnership strategy, as demonstrated by the new “We Belong to Something Beautiful” campaign with Lady Gaga’s Haus Labs brand.

Sephora continued to invest in its omnichannel strategy and expand its retail network, opening around a hundred locations in 2025. This expansion was particularly dynamic in the United Kingdom, with five new stores delivering outstanding performance. A new flagship store opened in São Paulo, while a new store concept was rolled out in North America. The Maison continued to develop its Sephora experience concept in Asia, exemplified by a new store in Bangkok and the renovation of existing stores in China. Meanwhile, the app continued to establish itself as Sephora’s “digital flagship”, offering an enhanced experience.

Sephora continued to grow its community of 80 million active members around the world and strengthen its brand, which has ranked among the world’s top 100 brands for several years running. The “Sephoria” world tour continued, with events in Milan, Shanghai, Paris and Dubai.

The Maison reaffirmed its values and its commitment to environmental and corporate social responsibility. For the third year in a row, Sephora renewed its partnership with the Rare Beauty brand to mark World Mental Health Day.

With tourism recovering more quickly in some markets than others, DFS focused on improving its profitability, notably by streamlining its store network and undertaking targeted marketing initiatives. Its Abu Dhabi airport store and the Galleria in Okinawa, which celebrated its 20th anniversary, continued to attract high footfall and strong demand. Revenue grew in Hong Kong and Macao thanks to a strategy of forging stronger partnerships with iconic brands, renovating stores, launching exclusive products and running high-impact events and initiatives at key locations, such as Four Seasons Macao.

Le Bon Marché once again posted revenue growth, driven by its differentiation strategy focused on a continuously renewed selection of exceptional products, exclusive partnerships and concepts, and a rich array of cultural events. Highlights of the year included the Le La Serpent exhibition, which gave carte blanche to renowned Brazilian artist Ernesto Neto; the light-heartedly offbeat Je T’aime Comme Un Chien exhibition; the Tout Beau et Tout Bronzé exhibition held over the summer; and the Rock’n’Drôle exhibition in September, created with Antoine de Caunes, which took visitors on a humorous journey through the history of rock. Babel, a stunning new performance choreographed by Mourad Merzouki and Le Bon Marché’s third night-time show, was a major success. With its exceptional range of culinary products and gourmet experiences, La Grande Épicerie de Paris achieved revenue growth, particularly among international customers. The Group strengthened the organization of its department stores in March 2025 by implementing a shared governance structure for Le Bon Marché and La Samaritaine, which will continue its development while drawing up its business model for the future.

Outlook

In 2026, Sephora will continue to pursue its strategy of differentiation through products and experiences, and will continue to expand its store network to sustain growth and win market share. The Maison will focus on seeking out growth opportunities across all of its geographical markets, including the most mature, as well as launching in new countries such as Croatia in Europe and continuing to expand in the United Kingdom, Latin America and Southeast Asia. In North America, Sephora will continue to open new stores and pursue its renovation program, rolling out its new store concept. In China, its new strategy will feature a number of exclusive brand launches and store renovations. The Maison will focus on developing its “Only at Sephora” selection and brand collaborations, following the model of Rhode, which will continue to be rolled out. Its omnichannel strategy will be further reinforced to ensure a seamless user experience and personalized, high-quality advice at every step of the customer journey, notably through the global rollout of its skin scan and shade finder tools. The Maison will continue to inspire its community, with the now iconic “Sephoria” event to be held in a number of capital cities, and to reward customers, with the rollout of the “My Sephora” loyalty program. Spurred on by the conviction that its people, and in particular its beauty advisors, are the key to its success and its ability to deliver excellence in the customer experience, the Maison will continue to prioritize career development and training, with Sephora University and advanced new tools underpinned by technology and artificial intelligence. Lastly, the Maison’s commitment will be embodied in initiatives promoting inclusion – a core component of its global mission. DFS will further focus on its clienteling activities, showcase its selection of high-quality products and launch targeted initiatives. An agreement was signed in January 2026 with China Tourism Group Duty Free to acquire DFS’ business in Greater China, in particular the Gallerias in Hong Kong and Macao. Le Bon Marché will strive to further enhance the quality of its exclusive selection focused on desirability and uniqueness. The Maison will launch a new loyalty program in September 2026 to attract and satisfy an ever more demanding customer base. The legendary department store on the Left Bank of the Seine will continue to host unique artistic events, starting with an exhibition by Chinese artist Song Dong, a major figure in contemporary art. La Grande Épicerie de Paris will showcase regional specialties and develop its range of artisanal products and services.

6.     Other activities

“Other activities” include, in particular, the Les Echos group, which comprises leading French business and cultural news publications; Royal Van Lent, the builder of high-end yachts marketed under the brand name Feadship; and Cheval Blanc and Belmond, which operate a collection of exceptional hotels and hospitality activities.

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1.     General framework for preparation of the sustainability report

1.1         Basis for preparation of the Sustainability Report

The Sustainability Report for fiscal year 2025 has been drawn up in accordance with Directive (EU) 2022/2464 as regards corporate sustainability reporting (CSRD), as transposed into French law in Order No. 2023-1143 of December 6, 2023.

Annual sustainability disclosures are prepared in accordance with European Sustainability Reporting Standards (hereinafter “ESRS”), Article L. 233-28-4 of the French Commercial Code and the Taxonomy Regulation. In accordance with Delegated Act 2025/1416 adopted by the European Commission on July 11, 2025 (the “quick fix” act), the LVMH Group adopted the transitional measures required for fiscal year 2025 (see §1.2).

Application for fiscal year 2025

The Sustainability Report is based on the ESRS in force and the various recommendations of the European Securities and Markets Authority (ESMA) and European Financial Reporting Advisory Group (EFRAG) as of the date of preparing the statement. The information it contains has been prepared in an evolving regulatory environment characterized by a desire to clarify and simplify the implementation of disclosure obligations.

In particular, some information is sensitive to methodological choices, assumptions and/or estimates used in their preparation and to the quality of the external data used. This concerns primarily disclosures relating to the value chain and the climate impact (Scope 3) and water impact associated with the Group’s activities. Such assumptions, estimates or other forms of judgment made on the basis of the information available or the situation prevailing at the date at which the Sustainability Report is prepared may subsequently prove different from actual events. As a result, the targets, objectives, means of action and results set out in the paragraphs relating to the topical ESRSs are based on indicators that depend on assumptions and estimates associated with changes in methodology and the level of scientific knowledge.

Other disclosures cannot be estimated due to the complex nature of EU regulations, the level of scientific understanding and limited access to reliable data from a number of internal and external sources. This is the case for qualitative disclosures concerning substances of concern and releases of pollutants.

As explained below, the scope of consolidation for the sustainability statement is the same as for the Group’s consolidated financial statements, with the exception of the fiscal year’s acquisitions. The Group is working on expanding this scope to include activities under operational control, as specified in ESRS E1, E2 and E4 (e.g. GHG emissions, quantities of pollutants and sites associated with material biodiversity matters), pending application guidelines from standards-setting bodies and market practices.

Scope of consolidation

The LVMH Group’s operations covered by this Sustainability Report correspond to the activities of the parent company and fully consolidated subsidiaries, apart from acquisitions carried out in the course of the year, which can take up to 12 months to include in the Group’s consolidated sustainability reporting. Acquisitions during the period are presented in the Group’s consolidated financial statements (see “Financial statements – Consolidated financial statements”, Note 2). The effect of these acquisitions on the Group’s 2025 data, calculated on a pro rata basis as of the date of acquisition, is deemed insignificant. Jointly controlled companies and companies where the Group has significant influence but no controlling interest and those accounted for using the equity method are considered part of the Group’s value chain.

Certain paragraphs of the Sustainability Report provide more specific details on sustainability information related to the Group’s value chains, both upstream (Group suppliers in particular) and downstream with customers (see §4 below, “Method for identifying impacts, risks and opportunities”).

In preparing the Sustainability Report, the Group did not use the options provided by ESRS 2-BP-1 §5-d and e.

1.2         Disclosures in relation to specific circumstances

As part of the process of drawing up the Sustainability Report, certain information requires the use of time horizons, assumptions, estimates or other forms of judgment.

Time horizons

In accordance with ESRS 1, the Group applies the following time horizons:

●   one year (short-term), in line with the Group’s financial statements;

●   two to five years (medium-term);

●   more than five years (long-term).

Use of transitional provisions

In accordance with ESRS 1, the Group has opted to apply the following transitional measures:

●   Value chain: The Group has made partial use of the phase-in provisions permitted related to quantitative and qualitative information about its value chain. However, this sustainability statement may use estimates for information reported concerning the Group’s upstream or downstream value chain. These estimates are detailed in the ESRS topic-specific sections with their definition, calculation method, scope, level of accuracy and, where applicable, how they could be improved.

●   Phased-in disclosure requirements: The Group has adopted all the phase-in provisions linked to the anticipated financial effects from risks and opportunities related to the five ESRS environmental standards (as presented in the table below) as well as those under ESRS S1 – “Own workforce”, solely for non-employees and only the information relating to the percentage of employees taking part in career reviews, for all employees (as presented in the table below).

Changes in preparation or presentation of sustainability information

The indicators are provided for fiscal year 2025 in comparison with fiscal year 2024 and the baseline year, where applicable. This information is provided in each topic-specific paragraph concerned, where applicable. The information required by GOV-4 “Statement on due diligence”, DR IRO-2 “Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement”, and ESRS 2 Appendix B “List of datapoints in cross-cutting and topical standards that derive from other EU legislation” has been moved to the appendix to the Sustainability Report to improve readability.

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

Where applicable, this sustainability statement sets out the recommendations followed under the TCFD (Task Force on Climate-Related Financial Disclosures) and TNFD (Taskforce on Nature-Related Financial Disclosures) frameworks.

2.     Governance

2.1         Role of administrative, management and supervisory bodies

The Board of Directors is the strategic body of the LVMH SE. Its key priorities are enterprise value creation and the defense of the Company’s interests. It endeavors to promote long-term value creation by the Company and protecting its corporate interests, focusing in particular on the social, environmental and climate issues facing its business. The members of the Board of Directors and their skills and experience are presented in the “Corporate governance” section, §1.1.1 and 1.1.2.

Its main assignments are as follows:

●   set the Company’s and the Group’s broad strategic direction and ensure that it is put into practice, in particular, on the recommendation of Executive Management, as regards environmental and social responsibility, taking into account the climate issues faced by their businesses;

●   promote a policy of economic development consistent with a corporate social responsibility approach based, in particular, on respect for human rights and protection of the environment in which the Group operates;

●   monitor developments in markets, the competitive environment and the key strategic priorities facing the Group;

●   ensure that the major risks to which the LVMH SE is exposed with regard to its structure and objectives are taken into account by management;

●   ensure that procedures to prevent corruption, particularly influence-peddling risks, are implemented;

●   monitor the performance of systems related to data protection and ethics;

●   ensure that a non-discrimination and diversity policy is in place within the Group’s governing bodies, the gender equality objectives of which it sets at the proposal of Executive Management;

●   disseminate the shared values that guide the Company and its employees, and govern relationships with consumers as well as with partners and suppliers of the Company and the Group;

●   ensure that the Group adapts to changes in the business environment, defines senior executives’ responsibilities and delegated authority.

In addition, the Board of Directors includes a Lead Director who is kept informed of any social, environmental and governance-related questions from shareholders.

2.2         Information provided to and sustainability matters addressed by the Group’s administrative, management and supervisory bodies

The Board of Directors has set up several committees, each specializing in a matter of importance: a committee in charge of performance audit, a committee in charge of compensation, and a committee in charge of sustainability and governance.

Each of the Board’s committees is involved in the process of drawing up and monitoring the Company’s and the Group’s non-financial strategy with regard to the topics within their fields of expertise.

The involvement of the administrative and management bodies and their work in relation to these sustainability matters are presented in the “Corporate governance” section, §1.2.2.5.

These three committees may work together on subjects concerning environmental, workforce-related and social responsibility. To that end, they may organize one or more joint meetings a year promoting a coordinated and consistent approach to work on these cross-cutting topics.

Concerning environmental, workforce-related and social responsibility matters, the committees’ main assignments are as follows:

Performance Audit Committee

●   monitor the process of preparing and checking sustainability information as well as the process implemented to determine which information to report pursuant to regulations;

●   present the Board of Directors with the report drawn up by the firm tasked with certifying sustainability reporting;

●   monitor and ensure the existence, pertinence and application of internal control, risk management (including social and environmental risks) and internal audit procedures, make recommendations to Executive Management on the priorities and general direction of Internal Audit, and analyze the Company’s and the Group’s exposure to risks, including social and environmental risks;

●   verify the independence of the firm tasked with certifying sustainability reporting and monitor the performance of its assignment;

●   oversee the procedure for selecting the Company’s Statutory Auditors, as well as the procedure for selecting the firms responsible for certifying sustainability reporting; and make recommendations on appointments to be proposed at Shareholders’ Meetings.

Compensation Committee

●   issue recommendations regarding the qualitative and quantifiable criteria applied to the variable portion of compensation for senior executive officers, which will take account, besides financial objectives (quantifiable), of strategic and managerial criteria (qualitative) as well as criteria related to corporate social responsibility and sustainability (quantifiable and qualitative), including one criterion directly related to the undertaking’s climate objectives;

●   periodically assess whether financial and non-financial criteria are met. These assessments will then be used to determine the variable portion of compensation paid to senior executive officers and define, where applicable, the conditions to be met for them to exercise their options to subscribe for or buy shares and vest the bonus shares, subject to performance conditions, awarded to them.

Sustainability & Governance Committee

Sustainability

●   assist the Board of Directors in defining the Company’s and the Group’s broad strategic direction with regard to ethical, workforce-related, environmental and climate-related matters, and ensure that it is put into practice;

●   assist in defining and ensuring compliance with the rules and values laid down in the LVMH Code of Conduct, which must be followed by senior executives and employees, as well as other codes and charters resulting from that Code;

●   review the performance of systems related to (i) the privacy of customers and employees, and (ii) ethics and compliance;

●   monitor the functioning of whistleblowing systems put in place within the Group and ensure the implementation and monitoring of systems related to duty of vigilance and respect for human rights;

●   review the environmental, workforce-related and social information contained in the Management Report of the Board of Directors and submit its opinion on this information to the Board.

Governance

●   identify, as part of the procedure for selecting Directors and in accordance with its diversity policy, the skills and expertise, particularly financial and non-financial, expected of potential Directors and considered key priorities for the Company;

●   give its opinion on the diversity policy applicable to members of the Board of Directors, the gender equality policy applicable to the Group’s governing bodies, the description of the goals of those policies, the terms of their implementation and the results obtained over the fiscal year covered to prepare the Board of Directors’ report on corporate governance;

●   discuss all matters related to corporate governance, and issue an opinion on the general policy for the allocation of options and bonus shares within the Group, and on its policy for employee savings and share ownership.

2.3         Integration of sustainability-related performance in incentive schemes

Senior executive officers

On the recommendation of the Compensation Committee, LVMH’s Board of Directors sets the terms for allocating annual variable compensation for senior executive officers.

Compensation paid to the Chairman and Chief Executive Officer, in addition to fixed compensation, includes a variable annual component based on the achievement of financial (quantifiable), strategic and managerial (qualitative) and CSR- and sustainability-related (quantifiable and qualitative) objectives.

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%.

In 2025, quantifiable and qualitative criteria related to corporate social responsibility and sustainability were centered on the following points:

●   supporting communication on ethics and building capacity on audit teams and the duty of vigilance;

●   stepping up the Group’s commitment to environmental protection, in particular through the LIFE 360 program;

●   driving specific investment in preserving craftsmanship and expertise.

The method used for assessing performance was reviewed by the Compensation Committee. Based on this assessment, the Board of Directors considered that the objectives had been met.

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.

The variable portion is capped at 250% of the Chairman and Chief Executive Officer’s fixed compensation.

In addition, senior executive officers of the Company are eligible for bonus share plans put in place by the Board of Directors for employees of the Company and/or employees and senior executive officers of affiliated companies and are subject to the same rules governing such plans, with the proviso that (i) they may only be awarded bonus shares subject to performance conditions and (ii) the total number of bonus shares awarded to senior executive officers of the Company over the course of a fiscal year may not exceed 15% of the number of shares granted by the Board of Directors over that fiscal year.

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. Performance criteria for bonus share plans are fixed by the Board of Directors and concern the LVMH Group as a whole.

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. This program contains specific objectives for protecting biodiversity, combating climate change, promoting circular economy practices and ensuring product traceability, to be achieved by 2030, with intermediate milestones to be reached before then (2023, 2026 and 2030) and annual monitoring.

An ad hoc committee consisting of the chairmen of the Board of Directors’ three committees meets to assess the Group’s specific trajectory and progress toward meeting the objectives and, consequently, to determine the percentage of shares to be vested on the basis of non-financial criteria.

2.4         Risk management and internal controls over the Sustainability Report

The main risks identified to date by the various departments involved in relation to sustainability information are the completeness and integrity of data, the accuracy of estimation results, and the availability of data on the upstream and/or downstream value chain.

To ensure the quality of non-financial data, reporting protocols are established by the departments involved. They are updated annually and communicated to the various contributors at the Maisons at the start of the data collection process. Moreover, the calculation methodology for the different indicators and consolidation rules are defined in advance, thereby ensuring that the reporting processes set by each department and their continuity are applied uniformly. The processing of estimates is also specified in the report. In addition, specific training may be organized for people involved in collecting and/or producing data.

Lastly, controls to detect and resolve any inconsistencies are carried out by each department involved (Environment, Human Resources, etc.) within the Maisons and at the Group level. These complement those directly integrated into the reporting tools.

In 2026, the Group Internal Control Department will be tasked with reviewing the methodological approach used by the Maisons in preparing the mapping of major risks (including in particular the risk assessment criteria) and documenting LIFE 360 and CSRD reporting processes.

3.     Strategy

3.1         Strategy, presentation of the Group and its activities

This paragraph sets out the Group’s business groups in addition to its values and operating model to give a better understanding of how sustainability is incorporated into its strategy, as well as how it manages the associated impacts, risks and opportunities.

The LVMH Group was formed from the merger of Moët Hennessy and Louis Vuitton in 1987. Mr. Arnault became the leading shareholder and Chairman and Chief Executive Officer in 1989, with the ambition of making LVMH the world leader in luxury.

Today, the LVMH Group has built its leading position through a unique portfolio of 75 exceptional Maisons, operating in six business segments. Each of them creates products that combine high-level expertise with a strong heritage, drawing their momentum from a spirit of innovation and openness to the world.

The Group helps its Maisons grow over the long term, based on respect for their specific strengths and individuality, underpinned by common values and a shared business model. LVMH provides them with all of the resources they need to grow in terms of designing, manufacturing and selectively retailing their products and services.

Business group overview

Through its Maisons, the LVMH Group comprises a diversity of businesses and is the only group that operates simultaneously in all the major luxury sectors, namely Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing and Other activities (See “Business overview, highlights and outlook”).

Key figures (as of December 31, 2025)

Geographic presence (as of December 31, 2025)

The values of a deeply committed Group

Driven by the mission of LVMH and its Maisons to craft dreams, the Group puts heart and soul into everything it does. Its core identity is based on the fundamental values that run through it and are shared by all its people.

Being creative and innovative: The fundamental values of creativity and innovation are pursued in tandem by the Maisons as they focus on achieving the ideal balance between continually renewing their offer while resolutely looking to the future, developing within the Group while staying true to their roots and their unique heritage, in order to craft products that will stand the test of time. Throughout the years, the creativity and innovation that are part of the Group’s DNA have been the keys to its Maisons’ success. They open up an infinite range of possibilities to be explored through new technology, one of the Group’s major growth drivers.

Delivering excellence: Within the Group, quality can never be compromised. Because the Maisons embody everything that is most noble and accomplished in the world of fine craftsmanship, they pay extremely close attention to detail and strive for perfection: from products to services, it is in this quest for excellence that the Group differentiates itself.

Cultivating an entrepreneurial spirit: The Group’s agile, decentralized structure fosters efficiency and responsiveness. It encourages individuals to take initiative by giving everyone a significant level of responsibility. The entrepreneurial spirit promoted by the Group makes risk-taking easier and encourages perseverance. It requires a pragmatic approach and the ability to motivate staff to achieve ambitious goals.

Taking action to make a difference: Every action taken by the Group and its employees reflects its commitment to ethics, corporate social responsibility and respect for the environment. These commitments drive the Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, the Group is committed to ensuring that its products, and the way they are made, have a positive impact on its entire ecosystem and the places it operates, and that it is actively working to build a better future.

Operating model

LVMH has adopted a unique model to ensure the development and autonomy of each of its Maisons in keeping with their identity. The Group makes available to them all the resources required to create, manufacture and distribute products and services that exemplify excellent quality and uphold the highest ethical, social and environmental standards.

Decentralized organization: The structure and operating principles adopted by LVMH ensure that Maisons are both autonomous and responsive. As a result, they are able to build close relationships with their customers, make fast, effective and appropriate decisions, and motivate Group employees for the long term by encouraging them to take an entrepreneurial approach.

Internal growth: The LVMH Group prioritizes internal growth and is committed to developing its Maisons, and encouraging and protecting their creativity. Staff play a critical role in a model of this kind, so supporting them in their career and encouraging them to exceed their own expectations is essential.

Vertical integration: Designed to cultivate excellence both up- and downstream, vertical integration ensures control of every stage of the value chain, from sourcing to production facilities and selective retailing. It also guarantees strict control of each Maison’s brand image.

Creating synergies: Resources are pooled at Group level to create intelligent synergies while respecting each Maison’s independence and autonomy. The combined strength of the LVMH Group is leveraged to benefit each of its Maisons.

Securing expertise for the long term: The Maisons that make up the Group cultivate a long-term vision. To preserve their distinctive identities and excellence, the Group and its Maisons have developed a range of initiatives to pass down skills and expertise, and promote craft trades and design professions among younger generations.

Balance across business segments and geographies: The LVMH Group has the resources to sustain regular growth thanks to the balance across its business activities and a well-distributed geographic footprint. This balance means that the Group is well positioned to withstand the impact of shifting economic factors.

Innovation dedicated to excellence: LVMH owes its long-term success to its pursuit of excellence. In an ever changing world, innovation is a powerful tool for achieving this, making the Group’s products ever more appealing and the experiences it offers its customers ever more unforgettable. Driven by its employees, the Group’s innovation is based on several pillars: its in-house R&D centers, its network of startups, its partnerships with the world of academia and numerous expert companies.

3.2         Involving stakeholders

Rethinking creation, preservation and the development of expertise, production, use and reuse, in order to bring about positive social and environmental impacts and reduce the Group’s negative impacts requires collective action and commitment. In this spirit, by working in synergy with its ecosystem, thanks to the input and buy-in of stakeholders, LVMH and its Maisons are taking action to build the luxury industry of tomorrow.

This dynamic is intended to create a virtuous circle of shared progress and mutual benefit across all territories where LVMH has a presence. It strengthens trust between the Group and all its stakeholders, such as customers, suppliers, institutions, local authorities, international organizations and non-governmental organizations.

The Group’s approach to stakeholder dialogue and engagement is guided by a genuine spirit of partnership. To identify and implement innovative action programs designed to address challenges and achieve its strategic objectives, the Group acts as either an initiator or a coordinator of dialogue on key issues. Alongside this approach, the Group is strongly committed to the principle of autonomy whereby some Maisons are free to structure and oversee their own approaches to engaging with targeted issues, in partnership with their respective ecosystems.

The main types of stakeholders with whom the Group enters into dialogue (monitoring, consultation, engagement) are as follows:

1.     NGOs and nonprofits representing civil society;

2.     Scientific experts and representatives from the academic world;

3.     Sector organizations and peers;

4.     Suppliers and subcontractors;

5.     Shareholders and investors;

6.     Customers;

7.     Public and international institutions;

8.     Employees, unions representing workers (including within the value chain);

9.     Economic partners.

Stakeholder consultation takes place at various levels and is essential in strengthening the Group’s sustainability action plans. It also plays a foundational role in shaping due diligence mechanisms.

Examples of current initiatives across the Group and its value chains by stakeholder type

The above table sets out a list of initiatives undertaken by the Group to dialogue with stakeholders on sustainability matters. The information is presented for illustrative purposes: it is not exhaustive and does not encompass all measures adopted. Furthermore, it is presented in greater detail in the sections of this report that cover specific environmental, social and governance matters.

3.3         Responsible, sustainable model for value creation

Driven by its mission of crafting high-quality products and services, LVMH’s business model draws on human, creative and financial capital, as well as natural materials, to create exceptional items that stand the test of time, according to different stages of value creation:

Design: LVMH capitalizes on the creativity of its employees, whether creative directors, cellar managers (Wines and Spirits), fragrance designers (Perfumes and Cosmetics) or architects. These creative visionaries are the guardians of each Maison’s heritage. Each of them draws on this heritage to design products and spaces that renew the offer proposed by Maisons while also respecting their heritage, being firmly open to the world, and remaining committed to sustainability, innovation and the passing on of vital skills and knowledge.

Supply chain: LVMH cultivates excellence from the very beginning of its value chains by opting where possible to source raw materials that limit environmental impact and involve local communities. For certain supply chains, LVMH promotes adopting regenerative practices to create a positive impact, helping nature and local communities alike.

Production: LVMH’s long-term commitment is also reflected in its safeguarding of skills and expertise to preserve the identities and excellence of its Maisons. A range of initiatives have been developed to promote craft trades and pass on skills and expertise. LVMH and its Maisons prioritize energy efficient production methods, taking care to limit the consumption of natural resources without ever compromising the quality of products.

Transportation and logistics: The Group and its Maisons manufacture products which are produced mainly in France and Italy and then transported to 81 countries throughout the world. Optimizing logistics by geographic region is a constant consideration for LVMH Maisons in order to limit their environmental impact. By the same token, opting for local transportation methods that generate lower greenhouse gas emissions is another way the Group contributes to its continuous improvement approach.

Retail and customer experience: Controlling the distribution of its products is a core strategic priority for LVMH. The Group has a world-leading network of exclusive boutiques under the banner of its brands, with the aim of consistently delivering full satisfaction and excellence in the customer experience. For all its business sectors, LVMH strives to achieve optimal environmental management of its store network, which is also an essential component of its close ties with each customer base and allows it to offer unique shopping experiences.

Circularity: LVMH and its Maisons approach value creation from a circular economy perspective, which is reflected in both widespread adoption of sustainable design and repair, and in the development of synergies. Resources are pooled at Group level to create intelligent synergies while respecting each Maison’s autonomy and with the goal of enhancing the sustainability of products and their components. LVMH and its Maisons are also committed to ensuring their activities have a positive impact on local communities, working in collaboration with local stakeholders.

Business model – LVMH Group (75 Maisons, 81 countries) – Figures for 2025

4.     Identifying impacts, risks and opportunities

4.1         Method for identifying and assessing impacts, risks and opportunities

4.1.1       Description of the processes to identify and assess material impacts, risks and opportunities

Dedicated governance arrangements have been put in place under the aegis of the Executive Committee to oversee and operationally implement the CSRD within the Group, including the creation of specific bodies: a dedicated Management Committee led by the Director of General Administration & Legal Affairs and the Chief Financial Officer who report back to Executive Management and a Steering Committee. These committees consist of representatives from the following departments: Purchasing; Ethics and Compliance; Group Controlling, Reporting & Consolidation; Environmental Development; Social Development; Duty of Vigilance; IT & Technology; Legal; Operations; CSR and Human Resources.

In keeping with the requirements of the Corporate Sustainability Reporting Directive (CSRD), the LVMH Group carried out a double materiality assessment (DMA) in 2024, the methodology of which was in accordance with the expectations set out in the European Sustainability Reporting Standards (ESRS), a delegated act published in July 2023, and the recommendations laid down in the EFRAG Materiality Assessment Implementation Guidance. In 2025, a review of the DMA conducted by the Steering Committee, chaired by the Director of General Administration & Legal Affairs and the Chief Financial Officer, confirmed that the material matters identified remain relevant.

The purpose of the double materiality assessment – a cornerstone of the CSRD – is to identify sustainability matters reflecting the following:

●   existing or potential positive and negative material impacts on people and the environment connected with the business of the Company and its value chain (impact materiality – inside-out perspective);

●   material financial impacts – both positive (opportunities) and negative (risks) – connected with sustainability matters that affect or could affect the Group’s financial performance (financial materiality – outside-in perspective).

The Group plans to have the materiality assessment reviewed annually by the Steering Committee responsible for sustainability matters and updated every three years, or when a major change of scope occurs.

All the methodologies used are described in the following paragraphs and the results of the analysis confirmed by these bodies.

This process of identifying, assessing and managing impacts, risks and opportunities follows a specific procedure. It is not currently incorporated into the overall risk management process at Group level.

Sustainability risk is treated in the same way as other types of risk.

4.1.2       General approach

Scope, phasing and key assumptions

To cover all of the Group’s activities while taking into account their specific characteristics, the double materiality assessment has been undertaken across eleven value chains: “Wines and Spirits,” “Fashion,” “Leather Goods,” “Watches,” “Jewelry,” “Perfumes and Cosmetics,” “Selective Retailing,” “Media, Communications, Events and Shows,” “Hospitality, Luxury Tourism and Parks,” “Food & Beverage, Patisseries” and “Yacht Building.”

The value chain for each of the aforementioned activities has been mapped, creating a global vision for the Group and highlighting the business models, industry sectors, upstream and downstream value chain segments and stakeholders affected. Impacts connected with the Group’s own operations and the value chain, including those connected with business relationships, have been considered across all geographies.

The process of identifying material impacts, risks and opportunities (IROs) was broken down into four key steps:

The first step consisted of identifying LVMH’s sustainability matters based on: (1) matters previously identified by the Group; (2) information specific to the Group’s various businesses; (3) the Group’s business model and value chain; and (4) ESG topics, subtopics and sub-subtopics listed in the ESRS.

The identification and assessment of impacts, risks and opportunities is based on the following:

-   sources of sector information: studies, peer practices, benchmarks, etc. (e.g. SASB, rating agency questionnaires);

●   internal sources of information regarding analyses of the Group’s activities and products, including existing impact and risk analyses;

-   consolidation of the views and interests of external stakeholders (consumers, local communities, civil society, nature, etc.) through in-depth bibliographical analysis and interviews.

In accordance with the requirements of ESRS, the following choices were made when the list of IROs was drawn up:

●   impacts, risks and opportunities identified and assessed are considered at “gross” level, i.e. without taking into account any action plans put in place;

●   risks and opportunities often arise from impacts. This means that, for each impact, the “counterparty” in terms of risk or opportunity must be considered.

Lastly, in addition to integrating the results of regular discussions with stakeholders (see §3.2 above) in order to take stakeholders’ interests and perspectives into account in evaluating IROs, the Group ran a dedicated interview-based consultation with eight external stakeholders, including (i) representatives from non-governmental organizations (NGOs) with expertise in environmental, social and governance matters and (ii) investors. These stakeholders were identified and ranked on the basis of their expertise and understanding of the impacts of the activities of the Group and its value chain. This targeted consultation aims to make the double materiality assessment more robust by means of a qualitative and strategic perspective of the stakeholders/experts involved.

4.1.3       Assessment of IROs

Assessment of impacts

Impact materiality was assessed using two variables required by ESRS, ESRS 1 and ESRS 2: severity (scale, scope and irremediable character) and likelihood. In terms of the potential negative impacts on human rights, severity takes precedence over likelihood. Each severity and likelihood criterion was assessed on the basis of a score from 1 to 4. Three time horizons were considered: short term (less than one year, aligned with the financial statements), medium term (between one and five years) and long term (over five years). The valuation of long-term impacts (i.e. aggravation of a negative impact or reinforcement of a positive impact) was adjusted by applying a coefficient. Combining these scores and coefficients allowed a final score from 1 to 4 to be given, which was then used to prioritize the impacts.

Assessment of risks and opportunities

Financial materiality was assessed using two variables required by ESRS 1 and ESRS 2:

●   severity, i.e. potential scale of financial effects;

●   likelihood of occurrence.

Severity was assessed on the basis of a score from 1 to 5 and likelihood from 1 to 4. As with impacts, a number of different time horizons were also considered, notably by including a coefficient to reflect the long-term improvement or deterioration in a financial effect. Each variable was either allocated a score or used as a coefficient. Combining these scores and coefficients allowed a final score from 1 to 5 to be given, which was then used to prioritize risks and opportunities.

Setting and reviewing thresholds

Each score was reviewed and validated by members of the CSRD Steering Committee (see §4.1 above).

Materiality thresholds were determined based on the following criteria and signed off by the Steering Committee:

●   alignment and continuity with the Group’s strategy and previous impact, risk and opportunity assessments;

●   materiality of the information for affected stakeholders and users of sustainability information.

Once the final results had been consolidated, the CSRD Steering Committee presented and explained the methodology used for the double materiality assessment to the Performance Audit Committee and the Sustainability & Governance Committee on November 26, 2024.

4.2         Material impacts, risks and opportunities and relationship to strategy and business model

Brief description of impacts, risks and opportunities

The Group’s activities involve exposure to various risks that are the object of regular risk management and identification, notably within the context of regulatory reforms. Each year, they are included in the “Risk factors and management” section.

The business model may create impacts, risks and opportunities, which are identified and assessed using a specific methodology and time horizon (see also §4 below for more information about the methodology used for identifying material impacts, risks and opportunities) which can be summarized as follows:

●   Impacts, risks and opportunities related to environmental matters:

-   contribution to climate change related to GHG emissions (ESRS E1);

-   risks associated with pressure on raw materials due to climate change and availability of water (ESRS E1);

-   environmental impacts in terms of water withdrawal, pollution and biodiversity focused on upstream mining and agricultural activities, particularly during the extraction of raw materials (ESRS E2, E3 and E4);

-   management of waste and unsold items (ESRS E5);

-   production of exceptional items that stand the test of time as part of a sustainable design approach resulting in the creation of new circular services (ESRS E5).

●   Impacts, risks and opportunities related to social matters:

-   impacts in terms of social integration and fulfillment through work (ESRS S1 and S2);

-   protecting and passing on expertise (increasing employability) (ESRS S1 and S2);

-   impacts on working conditions, in particular for the most vulnerable workers (physical risks and safety risks relating to specific activities, seasonal work, etc.) (ESRS S1 and S2);

-   reputational risk in terms of failure to uphold workers’ rights (ESRS S1 and S2);

-   risk of loss of expertise and rare skills in traditional crafts (ESRS S1 and S2);

-   opportunity for influence and growth (Group attractiveness) (ESRS S1);

-   contribution to equal opportunity through professional integration and boosting the local economy (creating jobs) (ESRS S3);

-   conflicts of use in upstream agricultural and mining activities (access/water and soil pollution) (ESRS S3);

-   impact in terms of use of elements/cultural codes belonging to communities (ESRS S3);

-   impact in terms of expanding access to culture (ESRS S4);

-   impact on health for Perfumes and Cosmetics and Wines and Spirits activities (ESRS S4);

-   impact by means of marketing and advertising practices (dissemination of stereotypes) (ESRS S4);

-   opportunities to develop products and services taking all singularities into consideration (ESRS S4).

●   Impacts, risks and opportunities related to governance matters:

-   contribution to protecting animal welfare; risks of sanctions or reputational risk associated with failure to observe the ethical standards promoted by the Group.

To manage the impacts, risks and opportunities and increase its resilience and competitiveness, LVMH has drawn up specific action plans (LIFE 360, the CSR Roadmap, the Convergence program, etc.), which are implemented by all the Maisons. A continuous improvement process is defined that aims to cover all its value chains.

The table below sets out the material impacts, risks and opportunities identified by the Group and their relationships with the strategies developed and implemented by it.

Correlation between material impacts, risks and opportunities and specific action plans

(–)  Negative impact

(O) Opportunity

(R)  Risk

Policies related to impacts, risks and opportunities

LVMH’s strategies and the associated action plans contribute fully to the Group’s vigilance approach through which LVMH identifies, prevent and mitigates risks to human rights and fundamental freedoms, human health and safety, as well as the environment, at every stage in the value chains of Group business activities.

Oversight of the Group’s vigilance approach relies on a dedicated governance structure involving every level of the Group, from the Board of Directors right down to operational communities within the Maisons, and a department focused solely on the duty of vigilance, which also regularly reports on its activities to the Sustainability & Governance Committee of the Board of Directors.

The Group’s vigilance approach is described in the “Risk factors and management” section of this Universal Registration Document and the due diligence statement can be found in the appendices to this Sustainability Report.

1.     General environmental policy

The LVMH Group environmental policy, which itself dates back to 1992, is designed to fulfill three purposes:

●   prevent and/or reduce environmental impacts by precisely measuring the impact of the Group’s activities on the climate, biodiversity (in soil and ecosystems) and water resources, covering Scopes 1, 2 and 3;

●   strengthen the intrinsic qualities of LVMH products (product sustainability and transmissibility), adopting the circular economy model;

●   promote positive impacts on the environment and society using creativity and innovation to change practices, while also encouraging other operators in the luxury sector.

It is based on a regularly updated analysis of the materiality of the environmental matters that it plans to address. In 2024, this analysis was completed using a double materiality assessment, in compliance with CSRD requirements. In 2025, a review of the DMA conducted by the Steering Committee chaired by the Director of General Administration & Legal Affairs and the Chief Financial Officer confirmed that the material issues identified remain relevant.

Measurement of the Group’s Climate, Water and Biodiversity footprints fueled the creation of LIFE 360 (LVMH Initiatives For the Environment – 360), a specific and proactive program of actions. Launched in 2021, this program includes objectives to be achieved by 2023, 2026 and 2030 that relate to the climate, biodiversity, circularity and traceability. The aim of this program is to create products that are in harmony with nature, with no negative impacts on resources and the climate. When the report was released on the level of achievement of objectives for 2023, these aims were publicly restated at the LIFE 360 Summit at UNESCO on December 14, 2023: “We are introducing a new vision for luxury that combines performance and commitment, while respecting the environmental equilibrium, and continuing to inspire dreams,” explained Mr. Arnault, Chairman and Chief Executive Officer for the Group, in his closing speech. On December 10, 2025, 32 sustainability initiatives – selected by an external firm from among 187 applications put forward by 41 Maisons – won LIFE 360 Awards.

1.1         Organization of the Group’s environmental approach

1.1.1       Governance related to environmental strategy

LVMH actions support the ten principles of the United Nations Global Compact, which the Group joined in 2003, and its Sustainable Development Goals.

The Board of Directors – the Company’s strategic body – is responsible for implementing the LIFE 360 environmental strategy, based on the opinions of the Sustainability & Governance Committee. The Board of Directors set up this committee, including within its role the provision of support in defining the broad strategic direction of the Company and the Group with regard to ethical, environmental and workforce-related matters, as described in the “General information” section, §2, “Governance”.

On the recommendation of the Compensation Committee, the Board of Directors sets the Chairman and Chief Executive Officer’s annual variable compensation, one of the criteria for which is linked to delivery of the LIFE 360 program commitments.

The Environmental Development Department – which reports to Antoine Arnault, Director of Image & Environment and a Member of LVMH’s Board of Directors and its Executive Committee – is responsible for implementing the LIFE 360 environmental strategy at a Group level and the environmental action plans included in the Sustainability Report. Since 2021, Antoine Arnault has delivered an annual report on the progress of the five LIFE 360 action plans at the annual Shareholders’ Meeting.

The Environmental Development Department also has these duties:

●   provide reporting on environmental data within a precisely defined scope and based on specific consolidation rules (see §1.4). The reporting system was implemented in 2001 and consists of four questionnaire types that were updated in 2024 to gather new information consistent with CSRD requirements;

●   use this reporting to provide updates on the Group’s environmental strategy, thus contributing to its non-financial performance. In 2025, the Group was included in the main indices based on responsible investment criteria: FTSE4Good Global 100, Sustainalytics (13.6) and S&P Global ESG (63/100). In 2025, LVMH was awarded a triple A rating by the CDP.

●   identify world-class measurement tools and methodologies and carry out forward-looking analysis to help the Maisons safeguard against risks and seize opportunities in each main business group, and in hospitality activities;

●   train employees and raise environmental awareness at every level of the organization via the LIFE Academy in particular;

●   monitor regulations around the world and ensure compliance with associated requirements;

●   share LVMH’s environmental experience at international summits and build proactive partnerships, which may have an influence on other players in the luxury sector.

1.1.2       Implementation of the environmental strategy within the Maisons

The Environmental Development Department is responsible for implementing the five LIFE 360 program action plans within each of the Group Maisons, and for monitoring these plans using the following methods:

●   each Group Maison includes the LIFE 360 program in its strategic plan and reports on its progress within its Management Committee. Some of the Maisons have incorporated LIFE 360 into dedicated processes (with indicators that reflect the specific characteristics of their key issues), such as: “Our Committed Journey” for Louis Vuitton, “Living Soils, Living Together” for Moët Hennessy, “In the Name of Beauty” for Guerlain and Sustainable Development for Bvlgari;

●   each Maison relies on the Sustainable Development Departments and internal environmental expertise when implementing their environmental program. The Maisons are responsible for collecting, monitoring and consolidating environmental data within their own scope of activity. By signing a letter of representation, they commit to the quality and completeness of the environmental data sent to the Group annually in preparation for this report;

●   the Maisons’ variable compensation policies may include performance objectives related to sustainability;

●   each year, the Environmental Development Department sends each Maison a table in which to report an overview of the progress made on the LIFE 360 program. This department also organizes a review of the LIFE 360 results based on a random selection of 75 Group Maisons providing a representative sample of its business groups, attended by the Maison President and its Head of Sustainability, as well as the LVMH Group’s Director of Image & Environment and Head of Environmental Development.

LVMH’s environmental experts (Group and Maisons) make up a network of nearly 200 people, known as the Environment Committee, which meets twice a year, in order to:

●   share the analysis of LIFE 360 results for each business group;

●   discuss best practices;

●   carry out a review of environmental innovations implemented within the Maisons, and identify possible synergies to broaden their scope.

1.2         The LIFE program

1.2.1       Origin of the approach

Signed in 2001 by the Group’s Chairman and Chief Executive Officer, the Environmental Charter (whose principles have now been integrated into the LVMH Code of Conduct) is the founding document for LVMH’s five key principles with regard to the environment:

●   striving for high environmental performance;

●   encouraging collective commitment;

●   managing environmental risks;

●   designing products that factor in innovation and environmental creativity;

●   making a commitment that goes beyond the Company.

Launched in 2011, the LIFE program puts these goals into practice. It was designed to step up environmental integration within the brands’ strategy and help develop new coordination tools. Roadmaps were used to implement the program, fixing quantified objectives shared across the Maisons.

The LIFE 360 roadmap covers the period from 2021 to 2030. With the Maisons’ shared desire to further accelerate progress, it was developed in 2020 by assessing previous roadmaps, analyzing the Group’s environmental footprints, and completing other preparatory work, including:

●   priorities set jointly with the Maisons and via the various consultative bodies: the LVMH Science Committee; the Future of Luxury Commission (established in July 2020 and made up of leading outside figures from various disciplines); and work sessions with students and young employees;

●   analyzing the extent to which LVMH’s environmental policy has contributed to the achievement of the United Nations Sustainable Development Goals (SDGs), in particular SDG 3 (“Good health and well-being”), SDG 6 (“Clean water and sanitation”), SDG 9 (“Industry, innovation and infrastructure”), SDG 12 (“Responsible consumption and production”), SDG 15 (“Life on land”) and SDG 17 (“Partnerships for the goals”);

●   securing approval for the prioritization of objectives and their terms of implementation at presentations to members of the Executive Committee and the Sustainability & Governance Committee.

1.2.2       LIFE 360 objectives

This roadmap, the fruit of the work described above, was unveiled at the 2021 Shareholders’ Meeting. The results for fiscal year 2024 were presented at the Shareholders’ Meeting of April 17, 2025, as has been the case for the roadmap since 2021. The LIFE 360 program sets out objectives for 2023, 2026 and 2030 and charts a course for creating products that embody the Group’s environmental ambitions. It is structured around five strategic action plans:

●   Taking action for the climate: Climate matters are material for the Group in two ways: its activities emit greenhouse gases (GHGs), and it faces physical risks (affecting the availability and cost of raw materials in particular) as well as transition risks. To confront this risk, the Group has adopted a transition plan, whose carbon trajectory is in line with the Paris Agreement. This plan was initially approved by SBTi (Science-Based Targets initiative) in December 2021 and subsequently renewed in 2025 after the objectives for Scopes 1 and 2 were achieved two years ahead of schedule, and to reflect required updates to the organizational and methodological scope (new categories in the GHG Protocol, changes in the baseline, etc.). The new objectives aim to achieve a 68% reduction in the Group’s Scope 1 and 2 energy-related greenhouse gas emissions by 2030 (baseline: 2023), a 27% reduction in Scope 3 emissions from agricultural practices by 2030 (baseline: 2023) and a 23% reduction in Scope 3 emissions from industrial processes by 2030 (baseline: 2023). Actions are concentrated on reducing Scope 1 and 2 emissions (energy conservation and energy efficiency) and making a positive impact by maximizing the proportion of renewable energy used in the Group’s energy mix (objective: exclusive use of renewable or low-carbon energy by production sites, logistics centers, administrative sites and stores by 2026). Reduction of Scope 3 emissions (mainly linked to raw material purchases and transportation) involves a number of action plans relating to sustainable product design, regenerative agriculture, responsible marketing and supporting suppliers through their environmental transition (LIFE 360 Business Partners launched at year-end 2023) (ESRS E1).

●   Protecting biodiversity: As LVMH’s activities are intimately linked to nature, the Group regularly measures and assesses its impact and dependencies on natural resources. The objectives laid down in this action plan are designed to avoid and reduce impacts (in terms of artificialization, withdrawals and/or pollution of soils, water resources, and ecosystems) and restore to the environment whatever is taken from it: zero deforestation and ecosystem conversion within its operations and supply chains by 2026; 100% of strategic supply chains to be subject to the most rigorous standards by 2026; a regenerative agriculture plan to restore 5 million hectares of flora and fauna habitats by 2030. The Group continues to roll out its Animal Welfare Charter published in 2019 and is working on a new raw materials sourcing charter. The Biodiversity program was supplemented in 2023 by adding a dedicated water resource protection policy aimed at achieving a 30% reduction in the Group’s water withdrawal (Scopes 1 and 3) by 2030 ESRS E2, E3 and E4.

●   Promoting circular design: Adopting the circular economy model in the production and management process is a way of reducing the consumption of natural resources and the climate impact. The goal of this action plan is to adopt circular economy principles in relation to products, packaging and operational waste and to contribute to the biodiversity and climate transition plans. In terms of the products, the objective is both to implement sustainable design (reaching 100% of new products sustainably designed in 2030, with a reduced environmental footprint from extraction of materials to their processing) and circular services (repair and refills) for all Maisons. The objective for implementing circular services was achieved in late 2023, in line with LIFE 360 expectations. The specific characteristics of LVMH Maison products (intrinsic quality and transmissibility) support the implementation of reuse, recovery, repair and recycling processes and over time will enable the launch of new product and service ranges. Packaging strategy will follow this same circularity trajectory, with an objective of zero fossil-based virgin plastics by 2026. As regards waste generated in operations, Maisons’ production sites are also subject to specific objectives, for example to roll out certified environmental management systems across all production and logistics sites by 2026. ESRS E5.

●   Ensuring traceability and transparency: The action plan aims to roll out dedicated traceability initiatives covering all strategic raw materials by 2030 and tools for sharing environmental and/or social information at product level. It supports the “Climate”, “Biodiversity” and “Circular Economy” action plans by reporting the environmental origin of products and their degree of sustainable design ESRS E4.

These four strategic action plans are accompanied by a fifth plan whose objectives are designed to mobilize stakeholders around the LIFE 360 priorities, in particular:

●   employees, with the aim of designing environmental training programs tailored to the specific characteristics of the Group’s businesses and providing training on sustainability matters to 100% of employees by 2026;

●   customers, with an objective of all new products having a dedicated information system by 2026;

●   strategic suppliers, with CSR clauses to be included in 100% of contracts and subject to verification by 2030, while offering an action program to help them reduce their carbon, water and biodiversity footprints (LIFE 360 Business Partners);

●   researchers, with a commitment to designing a dedicated sustainable luxury research and innovation program; this commitment was upheld in 2023, with the creation of the scientific innovation and research center LVMH Gaïa. LVMH is also supported by two external scientific research committees that enrich and guide the environmental policy and action plans. The first committee handles the supply of animal-derived raw materials, and the second deals with regenerative agriculture.

1.2.3       Results for 2025 of LIFE 360 objectives

Overview of results for LIFE 360 “Climate”

(a)  In 2024, the Group had achieved its previous objective – a 50% absolute reduction by 2026 against a 2019 baseline – two years early.

(b)  See §2.4, “Energy”, for the calculation methodology.

(c)   Recalculated value at constant scope and methodology with respect to 2025.

Overview of results for LIFE 360 “Biodiversity” (including water)

The 2025 results for certification of strategic raw materials are provided in §5, “Biodiversity and ecosystems (LIFE 360 – Biodiversity)”.

Overview of results for LIFE 360 “Circular Design”

Overview of results for LIFE 360 “Traceability and Transparency” (as % of quantities purchased)

1.3         Training and LIFE Academy

LVMH’s ability to drive continuous improvement in its environmental performance is closely tied to the Group’s success at making sure that its more than 211,000 employees understand their role as active participants in achieving this goal. The Group and its Maisons are thus working to train and raise awareness among employees as well as members of the management bodies with regard to the conservation of natural resources, biodiversity and climate change, undertaking to provide training on sustainability matters to 100% of employees by 2026.

Employee training and skills development are essential to implementing LIFE 360 and managing impacts, risks and opportunities linked to environmental matters.

Since 2023, the Group has established an educational body, LIFE Academy, offering a catalog of environmental training designed with input from subject matter experts, with a focus on two key areas:

●   “Essentials”: Generalist training for all employees aimed at developing an overview of environmental matters (climate, biodiversity, resources, etc.);

●   “Expert”: Specialized training aimed at specific business lines to boost skills and reinvent professional practices.

In 2024, LVMH strengthened its “Essentials” training by launching a new “Environment Essentials” e-learning module for all Group employees, now available in nine languages. This training constitutes the core knowledge that all employees must possess and understand. In 2025, over 20,000 employees took this module, which is now open to the Group’s Business Partners and suppliers.

The “Expert” training program includes courses tailored to specific professions, such as sustainable product design and packaging for stylists, developers and those in marketing roles; responsible sourcing and animal welfare for buyers; managing chemicals for quality and compliance teams; and sustainable store construction for architects.

What is unique about the LIFE Academy approach is that it is not just about learning but about putting that learning into practice. This is reflected in the design of the training programs, in which thinking together about real-life cases, sharing best practice among peers and drawing up action plans all play an important role.

On October 1, 2024, the Group opened the first LIFE Academy training campus on the site of Association de la Vallée de la Millière, founded by Yann Arthus-Bertrand. In opening La Millière, a haven of biodiversity with an educational focus located close to Paris, LVMH stepped up its ambitions in the area of training. The La Millière site also enables the Group to raise awareness among a wider audience, including schools, nonprofits and NGOs. In opening this site, LVMH is reaffirming its desire to share its knowledge and expertise more widely. This constitutes an integral part of the Group’s “Joining forces” philosophy, which encourages open and inclusive collaboration with all stakeholders. Passing on environmental knowledge is key to amplifying the collective impact of the Group’s actions and building a sustainable future.

More than 1,700 talented individuals from the Group’s Maisons have undertaken environmental awareness training at La Millière since it opened. As part of the LIFE 360 Business Partners Program, LVMH extended its comprehensive training approach to Business Partners and suppliers by opening up the LIFE Academy to them.

Initiatives rolled out in the second half of 2025 at their request include the following:

●   the LIFE 360 Climate Masterclass, run with the help of Carbone 4 in support of the shared effort to reduce the Group’s Scope 3 emissions, enabled 500 suppliers and LVMH employees to connect using an innovative and engaging professional video capture system;

●   webinars on EUDR (European Union Deforestation Regulation), including a session in Italian aimed at tanners and focusing on water issues, and a session in English with a more general approach to the regulation.

Employees having completed environmental training

(a)  Baseline: 2019. Indicator calculated on the basis of all Group employees. The reporting scope does not include employees who have been with the Group for less than one year and takes into account all apprenticeship formats.

1.4         2025 reporting scope and methodology

1.4.1       Reporting scope and rules

Data are collected either by Maison or by site (stores, administrative sites, production sites and logistics centers), according to the following rules:

●   Maisons: A Maison is included in environmental reporting if it is included in financial reporting. Following an acquisition, the acquired entity is included in environmental reporting one year after its inclusion in financial reporting.

●   Sites: The Group’s new sites are added to the environmental reporting scope in the year following their acquisition or their opening. Only sites under operational control are included in the environmental reporting. Operational control by the Group is defined as the total authority of at least one subsidiary over implementing operational policy at the site.

●   Divested entities (Maisons and sites): Entities disposed of during the fiscal year (between January 1 and December 31 of Year N) are excluded from the reporting scope for Year N.

The collected data are made up of at least nine months of actual data, and in most cases more than ten months of actual data. Actual data are complemented by extrapolated data, using, for example, data for the previous year corrected by business activity.

In 2025, reporting for environmental indicators covers the following scope:

Maisons

In 2025, as the scopes of financial and environmental reporting were brought into closer alignment, Maisons covered by environmental reporting accounted for more than 99.8% of Group revenue. Jewelry Operations, Paris Match and LVMHappening were brought into the scope of environmental reporting, while Patou, Buly and Cova did not report in 2025.

Acquisitions completed by the Group in 2025 were included within the scope of already consolidated Maisons and accounted for 0.0268% of Group revenue.

Production sites, logistics sites and administrative sites

In 2025, the Group continued with the efforts of the last few years to cover all sites within its reporting scope. Over 99% of production and logistics sites are covered, and across all site types, over 97% of sites are covered:

(a)  Including newly added sites belonging to Jewelry Operations, Paris Match, LVMHappening, etc.

(b)  Mainly consisting of regional administrative sites of Perfumes and Cosmetics Maisons where fewer than 20 people work.

Total store floor space

The total store floor space was included within the reporting.

Energy consumption, water withdrawal, waste management and calculation of Scope 1 and 2 greenhouse gas emissions for total floor space for stores without actual data are estimated to ensure the scope is exhaustive. For floor areas with no real data, the estimation method is based on coefficients calculated from real data, which is then used to estimate the relevant data for these areas.

84% of the store floor space covered in the reporting uses actual energy consumption data:

(a)  The change relative to 2024 is due to a review of procedures for consolidating Maisons including Tiffany and Christian Dior Couture.

1.4.2       Reporting methodology

In 2010, the Group implemented the environmental platform that collects the data required for the calculation of LVMH LIFE 360 environmental strategy performance measures.

The system used for environmental reporting is an SaaS platform made up of four types of questionnaire:

●   LIFE 360 questionnaire: Indicators used to monitor the LIFE 360 strategy;

●   questionnaire about upstream and downstream transportation;

●   questionnaire about raw materials;

●   site questionnaire covering site- and store-specific data: water and energy use, refrigerant leaks, waste production (quantity, type and treatment of waste), etc.

In total, more than 1,600 information types are collected by each Maison.

All of the calculation and consolidation rules and the checks are defined in the LVMH environmental reporting protocol.

To calculate the Group’s Scope 3 carbon footprint, the additional data required are sent by the Maisons through the reporting system for financial data (media service purchases, fixed assets and investments) and HR data (employee travel).

The collected data are checked, consolidated and validated by the Maisons and then the Group. The checks (units, vs. previous year, by activity, etc.) are enhanced every year to ensure data consistency.

The Maisons can access the dashboards that display the LIFE 360 indicators to make it easier to validate them ahead of Group consolidation.

2.     Climate change (LIFE 360 – Climate)

2.1         Addressing issues related to climate

2.1.1       Methodology for the assessment of impacts, risks and opportunities

As part of the process of analyzing impacts, risks and opportunities and assessing their materiality, the whole of LVMH’s value chain (upstream, own and downstream) and organizational scope (six business groups covering eleven businesses) was reviewed. The impacts of climate change are covered in the climate transition plan (CTP) (see §2.2 below), through locked-in emissions, identified key sources and the direction of business over the next few years. The assessment of risks and opportunities is described below. This assessment is based on the most stringent standards relating to risk and opportunity analysis, such as TCFD.

The Group’s assessment of risks and opportunities took into account all physical risks (both chronic and extreme), the four categories of transition risk (legal, market, technology and reputation) and four categories of opportunities (circularity, regenerative practices, renewable energy and responsible marketing).

The analysis, launched in 2022, is updated annually. A scoring methodology was used to determine the materiality of risks or opportunity. This involves assessing the materiality of a risk or opportunity based on a number of criteria, the key parameters of which are as follows:

●   severity: this parameter represents the degree of vulnerability to a given risk or opportunity, i.e. the impact it could have on revenue;

●   probability: this parameter assesses exposure to a given risk or opportunity and serves to determine the degree of certainty as to whether or not that risk or opportunity will materialize in the future;

●   aggravation: this parameter measures changes in a given risk or opportunity over time.

To assess each criteria, an analysis is completed by climate scenario, over the medium and long term. It is undertaken based on three main scenarios. These scenarios are underpinned by the work of the IPCC (Intergovernmental Panel on Climate Change) and key agencies such as the IEA (International Energy Agency):

●   SSP5-8.5 (+4°C): Current growth trends continue and the political, economic and societal environments remain unchanged. Climate change accelerates, triggering conflicts over resource ownership as well as political and social instability;

●   SSP1-1.9 (+1.5°C) – Energy conservation: The Paris Agreement targets are met, mainly as a result of increased awareness about environmental issues. Respecting the planet’s limits becomes a core consideration guiding production value chains and consumer behavior;

●   SSP1-1.9 (+1.5°C) – Technology: Achievement of the Paris Agreement targets is mainly dependent on technological breakthroughs to remove carbon from production processes. Regulations and drastic tax measures are crucial to a successful outcome, fueling conflict over resources.

Financial effects were described both qualitatively and quantitatively by assessing the increase in costs over time based on the Group’s business projections. This analysis involved both specific geospatial data (covering individual sites) and averaged regional data (covering the source region for a given material). Integrating the financial effects of these scenarios in the Group’s short-, medium- and long-term financial forecasts is one of the key priorities of the new Sustainable Finance task force, launched in 2025.

Discussions were held with all stakeholders involved in the value chain, including representatives of non-governmental organizations (NGOs) with expertise in environmental, social and governance matters, and investors (see the “General information” section, §4.1.2), as well as various Group departments, in order to pre-select risks and opportunities to be analyzed in detail.

2.1.2       Results of the assessment of risks and opportunities

Risks

For risks on sites operated by LVMH, all chronic and extreme physical risks were analyzed via a platform that uses highly accurate geospatial data to perform forward-looking environmental analysis. Each site has been scored based on its exposure to each risk category. The overall level of exposure of Group sites to each risk category is summarized in the table below:

Average exposure of Group sites by risk category

Each category of risk was assessed based on several different time horizons and climate scenarios. To support decisions concerning the Group’s investment strategy, the choice of time horizons was coherent with the lifespan of assets for financial purposes.

This analysis covered over 7,000 Group sites and stores, equal to 99.3% of the total scope, and is updated annually. It also meets the needs of the environmental taxonomy by contributing to the alignment assessment (identification and analysis of vulnerability to risks related to climate change).

For risks involving the value chain, and in particular key sources of greenhouse gas emissions (transportation and raw materials), the physical risks (chronic and extreme) and transition risks (legal, market, technology and reputation) included in the detailed analysis are presented below.

Physical and transition risks in the value chain