LVMH's Drinks Offer Little Cheer as Champagne Loses Its Fizz -- Market Talk

Dow Jones01-22 21:37

1337 GMT - LVMH's wine business is likely to disappoint when the luxury-goods group sets out 2025 earnings results next week, Morgan Stanley analysts write in a note. Champagne shipments and exports dropped on year in 2025, according to figures from trade association CIVC. CIVC highlighted changes in consumption trends and inflation among headwinds for the storied French bubbly. Domestic consumption is particularly weak amid a dark mood among French drinkers, MS says. Champagne also faces a worrying tend toward sobriety among younger consumers, as well as the rise of cheaper rivals like Italian prosecco, the bank says. LVMH's champagne brands tend toward the higher end, a sunnier point for the group given general premiumization. "Still, we expect LVMH's Wines & Spirits division to post profits below current consensus expectations for both 2025 and 2026." (joshua.kirby@wsj.com; @joshualeokirby)

(END) Dow Jones Newswires

January 22, 2026 08:37 ET (13:37 GMT)

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