Can Retail Cope with An Energy Price Shock?
Higher oil and energy costs are expected to squeeze discretionary
Earnings
LVMH (France) reported Q4 revenue rose 1% to €23.9 billion. Full revenue fell 2% to €84.7 billion ($88 billion), with net profit down 17% to €15.2 billion. Revenue for the fashion and leather goods group was down 3%, with profits falling 10%.
Levi’s (USA) reported Q4 net revenue rose 12% to $1.8 billion. Revenue increased in all markets with the Americas +12%, Europe +15% and Asia +9. Revenue for other brands grew 10%. Net income rose 44% to $183 million.
VF Corp (USA) reported Q3 2025 revenue grew 2% to $2.8 billion. Revenue in the Americas and Europe rose 1%, while APAC was up 5%. Operating income was $225.8 million compared with a loss of $91.4 million a year ago.
H&M (Sweden) reported Q4 revenue rose 3% to $5.5 billion (SEK 62,193 million), with operating profit up 7%. Full year sales rose 1%, with operating profit up 19%. In both Q4 and the full year, sales saw low single-digit growth in Europe, while inching down in the Americas (-7%), APAC, Oceania and Africa (-5%).
Markets
Higher oil and energy costs are expected to squeeze discretionary
A fragile revenue recovery is facing pressure from tariffs, higher
In uncertain markets, heritage brands are rediscovering that reputation, craft,
Asia and South America are driving retail expansion, but success
Winning retailers are abandoning expansion for expansion’s sake, focusing instead