Core Viewpoint - LVMH has not been covered recently, and the company, like others in the sector, has experienced significant changes in its market dynamics [1] Group 1: Company Overview - LVMH is recognized for its focus on quality and aims to identify the best businesses globally to build a long-term portfolio that can outperform the market [1]

Group 1 - LVMH has appointed Véronique Courtois as chair and CEO of Parfums Christian Dior and the beauty division, ensuring managerial and strategic continuity [1] - Antoine Arnault has also joined the executive committee, retaining his responsibilities for image, communications, and sustainability initiatives [3] - Stéphane Rinderknech, who previously oversaw hospitality operations and the beauty division, is leaving the company to pursue personal projects [5] Group 2 - Véronique Courtois has been with LVMH since 2000, progressing through various marketing roles and becoming president and CEO of Guerlain in 2019 [2] - Antoine Arnault has a diverse background, including founding a technology business and holding various leadership roles within LVMH, including CEO of Berluti [3][4] - Stéphane Bianchi, LVMH's managing director, expressed confidence in the new appointments, highlighting the impactful achievements of Courtois and Arnault [5]

Core Viewpoint - The high-end liquor market in China, particularly for cognac, is experiencing significant price adjustments and competitive dynamics, especially among the "Big Three" brands: Hennessy, Martell, and Rémy Martin [2][3][6]. Group 1: Market Dynamics - The traditional peak consumption period for high-end liquor, including cognac, is approaching with the upcoming Spring Festival [1]. - Hennessy has historically positioned itself as the highest-priced brand among the "Big Three," but recent strategies have shifted towards competitive pricing to increase market share [3][6]. - Hennessy's VSOP and XO products have undergone packaging changes to enhance market presence and competitiveness [5][6]. Group 2: Pricing Strategies - Hennessy's VSOP 700ml is now priced competitively, with prices dropping to around 300-500 yuan, significantly lower than previous years when it was priced above 600 yuan [5][10]. - The price of Hennessy XO has also seen reductions, with third-party sellers offering it for under 1000 yuan, contrasting with its previous pricing of 1500-2000 yuan [11][13]. - The price adjustments reflect a broader trend in the market, where Hennessy has reduced prices to combat the influx of parallel imports and maintain competitiveness against Martell and Rémy Martin [15][20]. Group 3: Industry Challenges - The LVMH spirits division, which includes Hennessy, has faced declining revenues, with a reported 5% drop in overall revenue and a 9% decline in operating profit for 2025 [17][20]. - The cognac industry is experiencing a downturn, with exports hitting a low not seen since the 2008 financial crisis, and inventory levels reaching record highs [20][21]. - The shift in consumer preferences towards more affordable options, such as whiskey and mid-range brandies, has further impacted the sales of high-end cognac [20][21]. Group 4: Strategic Adjustments - In response to market challenges, LVMH has initiated significant restructuring, including a 10% workforce reduction and leadership changes within the Hennessy brand [21][23]. - The new leadership aims to expand distribution channels in China and invest in long-term market development, indicating a strategic pivot to adapt to changing market conditions [23].

Core Insights - The disclosure of share transactions was submitted to the AMF on February 3rd, 2026, covering transactions from January 28th to January 30th, 2026 [1] Group 1 - The transactions were reported as per the requirements of current law [1]

Core Viewpoint - The article discusses the changing competitive landscape among the three major cognac brands in China—Hennessy, Martell, and Rémy Martin—especially in the context of price adjustments and market strategies leading up to the Chinese New Year, highlighting Hennessy's shift towards more competitive pricing to regain market share [1][18]. Group 1: Market Dynamics - The Chinese market for high-end cognac, particularly Hennessy, Martell, and Rémy Martin, experiences a seasonal increase in demand around the Chinese New Year [1]. - Hennessy has historically been the highest-priced brand among the three but has recently adjusted its pricing strategy to be more competitive, including lowering prices and changing packaging [1][3]. - Hennessy's VSOP 700ml is now priced competitively, with prices dropping to around 454 RMB on platforms like JD.com, which is lower than its previous price range of over 600 RMB [3][9]. Group 2: Pricing Strategies - Hennessy's pricing adjustments have resulted in its VSOP and XO products being offered at prices that are now comparable to or lower than those of Martell and Rémy Martin [4][6]. - The price of Hennessy VSOP has seen significant reductions, with third-party sellers offering it for as low as 300 RMB, contrasting sharply with its previous pricing strategy [4][6]. - The overall price positioning of Hennessy has shifted, with the brand now offering its XO at prices below 1,000 RMB in some channels, compared to its previous pricing of 1,500-1,700 RMB [7][9]. Group 3: Industry Challenges - The cognac market is facing challenges, including a significant decline in demand, with a reported 20% drop in cognac imports and exports in 2025, marking the lowest levels since the 2008 financial crisis [18][19]. - The overall performance of LVMH's wine and spirits division has been under pressure, with a 9% decline in revenue and a 25% drop in operating profit in 2025, primarily driven by the performance of Hennessy [14][18]. - The industry is experiencing a shift in consumer preferences, with many consumers opting for more cost-effective options like whiskey or mid-range brandies, leading to longer sales cycles for cognac [18][19]. Group 4: Strategic Adjustments - In response to market pressures, LVMH has initiated a global restructuring plan, including a 10% workforce reduction in its wine and spirits division to align costs with pre-2019 levels [19]. - New leadership has been appointed within LVMH's cognac division, indicating a strategic shift towards revitalizing the brand and expanding distribution channels in China [19][22]. - Hennessy plans to expand its distribution in China and invest in new markets, indicating a long-term commitment to regaining market share despite current challenges [22].

Group 1 - LVMH Moët Hennessy Louis Vuitton operates in various sectors including Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and Selective Retailing [2] - The company’s portfolio includes renowned brands such as Moët & Chandon, Louis Vuitton, Christian Dior, Bulgari, and Sephora, among others [2] - LVMH's Wines and Spirits division features brands like Hennessy and Veuve Clicquot, while its Fashion and Leather Goods division includes high-end labels like Fendi and Givenchy [2] Group 2 - The company has disclosed share transactions that occurred from January 28 to January 30, 2026, which were sent to the AMF on February 3, 2026 [1] - This disclosure is publicly available and can be accessed on the company's website under the section "regulated information" [1]

Core Insights - LVMH's champagne division, which includes brands such as Moet & Chandon and Veuve Clicquot, has reached an agreement with labor representatives to compensate workers for lost bonuses [1] Group 1 - The CGT union announced the deal regarding compensation for workers affected by lost bonuses [1]

Core Viewpoint - LVMH's cognac maker Hennessy has reached a pay deal with unions to compensate for bonuses lost last year due to weak sales [1] Company Summary - Hennessy is the largest brand within LVMH's drink portfolio [1] - The pay deal addresses the financial impact of last year's weak sales on employee bonuses [1] Industry Summary - The agreement reflects ongoing challenges in the beverage industry, particularly in the premium spirits segment, where sales fluctuations can significantly affect employee compensation [1]

Core Viewpoint - LVMH is attempting to revitalize Givenchy through strategic management changes and increased investment in its beauty segment, while facing challenges in the fashion line and competition from other luxury brands [4][8][21]. Group 1: Management Changes - LVMH appointed Amandine Ohayon as the new CEO of Givenchy, replacing Alessandro Valent, who served for only 18 months [6][24]. - Mark Shorten, the former president of LOEWE in Greater China, will take on the role of global sales president at Givenchy by the end of 2025, indicating a strategy to utilize successful management talent from within LVMH [7]. - The frequent changes in leadership at Givenchy reflect LVMH's urgency to reshape the brand and its direction [23]. Group 2: Financial Performance - In 2025, LVMH's revenue reached €80.8 billion, a 5% decline year-on-year, with the fashion and leather goods segment experiencing an 8% drop [10][11]. - The fashion and leather goods segment's organic growth was down 5%, while the perfume and cosmetics segment remained stable [10][12]. - Givenchy's fashion line is currently estimated to generate around €1 billion, which limits its ability to compete for resources within LVMH [18]. Group 3: Brand Strategy and Market Position - Givenchy is struggling to establish a strong market presence compared to other second-tier brands like CELINE and LOEWE, which have successfully transformed their brand image and sales [20][21]. - The brand's beauty segment, including successful products like its powder and fragrances, is seen as a potential growth engine, contrasting with the underperformance of its fashion line [16][22]. - Givenchy's marketing efforts are heavily focused on its creative director Sarah Burton's fashion shows, while the beauty line has seen more diverse promotional activities [18]. Group 4: Competitive Landscape - CELINE and LOEWE have emerged as leaders in the second tier of luxury brands, with CELINE's sales reportedly surpassing €2.5 billion in 2023 due to its successful rebranding efforts [20]. - LOEWE has consistently ranked high in global brand popularity, leveraging its strong visual identity and collaborations with artists [20]. - Givenchy's attempts to appeal to younger consumers through streetwear have not been successful, leading to a decline in brand relevance [21].

Core Viewpoint - LVMH faced a challenging year in 2025, with both revenue and profit declining due to global geopolitical instability, currency fluctuations, and market policy adjustments, indicating a need for further strategic shifts in the luxury sector [1][2]. Financial Performance - LVMH reported total revenue of €80.807 billion for 2025, a decrease of €3.876 billion (approximately ¥32.263 billion), representing a 5% year-on-year decline [1][3]. - The company's recurring operating profit and net profit also fell by 9% and 13%, respectively, amounting to €17.755 billion and €10.878 billion [1][3]. - The group's sales in the fourth quarter reached €22.7 billion, with organic revenue growth of 1%, showing signs of recovery in consumer demand, particularly in the Asia-Pacific and U.S. markets [1]. Business Segment Analysis - The fashion and leather goods segment, LVMH's largest, saw a revenue decline of 8% to €37.77 billion, with organic sales down 5% [4]. - The wines and spirits division was the hardest hit, with revenue of €5.358 billion and a 5% organic decline, while recurring operating profit dropped 25% to €1.016 billion [5]. - The selective retailing segment, particularly Sephora, showed resilience with organic growth of 4% and revenue of €18.348 billion, alongside a 28% increase in recurring operating profit [7]. Market Dynamics - The Asia-Pacific market, excluding Japan, became a key driver for recovery, contributing 26% of LVMH's revenue in 2025, despite a slight decrease from 28% in 2024 [10]. - LVMH's strategy in China includes opening larger stores while closing underperforming ones, reflecting a shift towards enhancing operational efficiency [11]. - The company is optimistic about the Chinese market, viewing it as a testing ground for new strategies, despite challenges posed by tariffs and geopolitical tensions [12]. Future Outlook - CEO Bernard Arnault acknowledged the ongoing economic and geopolitical challenges but expressed confidence in LVMH's cash flow, which grew by 8% to over €11 billion, allowing for sustained long-term strategic initiatives [2]. - The luxury market is showing signs of polarization, with high-end brands performing better than those heavily reliant on fashion and leather goods [8].