LVMH growth slows to 1% as fashion and leather sales fall 5% on weaker China demand
LVMH Moët Hennessy Louis Vuitton reported third-quarter 2026 revenue of €18.5bn on 12 October, up from €18.3bn a year earlier, with organic growth of 1 per cent, according to the statement on the company's website. That marked a slowdown from 3 per cent organic growth in the second quarter and matched the 1 per cent recorded in the first. Revenue for the first nine months was €57.1bn, down 2 per cent as reported but up 2 per cent on an organic basis.
The group attributed the softer quarter to a less buoyant environment in China, while reporting good growth in the United States, Europe and Japan. Currency movements added 2 percentage points to third-quarter reported growth and changes in scope subtracted 2 points; over nine months exchange rates were a 3-point drag and scope a 1-point drag, the statement said.
Fashion and Leather Goods, by far the largest division, posted a 5 per cent organic decline in the quarter after growing 1 per cent in the second, with revenue of €8.2bn. Over nine months the division's sales were €26.4bn, down 2 per cent organically and 4 per cent as reported. LVMH said the division continued to benefit from a strong US market but was affected by slowing demand in China. FashionUnited noted that Louis Vuitton, Dior, Loro Piana, Celine and Fendi were cited for store openings and collections during the period.
Other divisions offset part of the weakness. Watches and Jewelry grew 6 per cent organically in the quarter and 8 per cent over nine months to €7.7bn, with Bvlgari, Chaumet and Tiffany & Co. named. Selective Retailing, dominated by Sephora, accelerated to 8 per cent growth in the quarter and 6 per cent for the nine months, to €12.5bn; most of the DFS travel-retail businesses have been sold, according to FashionUnited.
Wines and Spirits, long a drag on the group, grew 6 per cent organically in the quarter and 5 per cent over nine months to €4.0bn. The company pointed to good momentum for Hennessy cognac in Asia, the launch of Hennessy ready-to-serve cocktails in the US and a recovery in champagne, most visible in Europe. Perfumes and Cosmetics was flat for the nine months, with 1 per cent growth in the quarter.
Portfolio changes continued. Marc Jacobs was sold to WHP Global on 1 September 2026, FashionUnited reported, and the company said no events had occurred that could significantly alter its financial structure. Dior opened a flagship store in Osaka in May, part of what the group described as good growth in Japan.
LVMH said it remained confident despite an uncertain economic and geopolitical environment and would keep focusing on brand desirability, product quality, retail execution and an agile organisation, with the aim of strengthening its leadership in luxury again in 2026. The statement contained no executive quotes and no financial guidance.
Full-year results, including profit figures that LVMH does not disclose at the quarterly stage, are due in late January 2027. Before then, peers' third-quarter updates will show whether the Chinese slowdown LVMH described is group-specific or sector-wide, and the Chinese economic data for October and November will indicate whether domestic luxury demand is stabilising ahead of the Lunar New Year selling season.
