LVMH third-quarter organic sales rise 1% as fashion and leather goods fall 5%

Third-quarter results

LVMH reported revenue of €18.5 billion for the third quarter of 2026 on Monday, 12 October, up from €18.28 billion in the same quarter of 2025. Organic growth, which strips out exchange-rate effects, was 1%, below the 1.3% forecast that the financial data provider Visible Alpha compiled from analyst estimates. Growth had been 3% in the second quarter and 1% in the first. The world's largest luxury group, which owns Louis Vuitton, Dior, Celine and Hennessy, was the first of the sector's big names to publish third-quarter figures.

Fashion and leather goods lag

The fashion and leather goods division, which accounts for almost half of group revenue, fell 5% organically to €8.2 billion, a steeper decline than the 1.8% drop the market had expected. Wines and Spirits (€1.4 billion) and Watches and Jewelry (€2.5 billion) both grew 6%, Perfumes and Cosmetics (€2 billion) rose 1%, and Selective Retailing grew 8% to €4 billion. Louis Vuitton's performance did not differ significantly from the group average, but a logistics problem took just over one percentage point off its organic growth in the quarter. The chief financial officer, Cécile Cabanis, ruled out drastic commercial moves such as price cuts, saying there are no shortcuts to accelerate growth at Louis Vuitton.

China and the wider market

Sales in Asia, where China is the main market, fell 5% in the quarter, while sales in the United States grew 5%. Cabanis told analysts that macroeconomic factors had sharply worsened Chinese consumer confidence in the third quarter, weighing on the Asian market and on non-essential consumer spending. China has also stepped up tax enforcement against high-income individuals, which RFI describes as the latest problem for luxury brands. The same brands are dealing with the impact of the Iran war and with signs of slowing US consumer spending. Chinese consumers make up about one-fifth of global luxury purchases and were the main engine of industry growth for years, but their demand has weakened since the pandemic. Louis Vuitton also faced a consumer boycott in China over a copyright dispute with a tea-drink chain whose logo resembles the floral pattern on Louis Vuitton's classic monogram handbags. The global luxury sector, valued at $350 billion, has seen growth slow for three years.

Market reaction

LVMH's US-listed shares fell more than 3% after the results were published. In Paris, the group's main listing, the shares have lost 40% of their value since the start of the year. European luxury groups have together lost about €330 billion in market value this year. Bank of America analysts wrote in their report that the results could still weigh on the whole industry.