LVMH: €19.1 Billion in Sales for Q1, but the Middle East Weighs on Leather Goods
LVMH recorded a revenue of €19.1 billion in the first quarter of 2026, showing positive organic growth despite a deteriorating geopolitical context. However, the group is directly impacted by the conflict in the Middle East, estimated to affect about 1% of its quarterly growth, while Asia shows significant acceleration and Fashion and Leather Goods decline by 2%.
Diverse Performance Across Business Segments
In the first quarter of 2026, LVMH achieved sales of €19.1 billion. Organically, performance varied significantly across the group's business sectors. The Watches and Jewelry sector showed the most marked progress with an organic growth of 7%. Selective Retailing progressed by 4%, while Wines and Spirits recorded a rise of 5%. The Perfumes and Cosmetics activity remained stable organically. Conversely, Fashion and Leather Goods experienced a decline of 2% in organic growth, being the main detractor of the period. Currency effects weighed on consolidated results with a depreciation of 7%, while the scope effect remained nil.
Geographic Sales Dynamics
The geography of sales reveals an uneven dynamic. Asia excluding Japan continues its improvement observed since the second half of 2025, confirming a resurgence of local demand in this region. The United States had a good start to the year. In Europe and Japan, the resilience of domestic demand partly offsets the decline in tourist spending. The Middle East illustrates the impact of exogenous shocks: after a very positive start at the beginning of the quarter, the conflict penalized the results of March. LVMH estimates this impact at about 1% of the quarter's organic growth. In Fashion and Leather Goods, this 2% decline in organic terms is directly attributable to disruptions in the Middle East, while other sectors maintain their momentum.
Investment and Innovation Strategy Amidst Challenges
Amidst this disturbed context, LVMH remains focused on its investment and innovation strategy. In Wines and Spirits, Moët & Chandon begins its second season as the official champagne of Formula 1, while cognac benefits from a favorable calendar for the Chinese New Year. Fashion and Leather Goods continues the creative rollout of its houses: Louis Vuitton celebrates 130 years of the Monogram, Christian Dior accelerates the integration of Jonathan Anderson's collections, and Loro Piana confirms excellent performance. Perfumes and Cosmetics maintains a sustained innovation policy, with notable successes around Christian Dior Perfumes (J'adore Intense, Dior Addict) and Guerlain. Watches and Jewelry records the strongest performances, with Tiffany showing excellent progress especially thanks to the HardWear line experiencing very strong growth, while Bvlgari deploys a new vision of high jewelry with Eclettica. The group reaffirms its confidence for 2026, prioritizing quality, desirability, and selective distribution in the face of persistent geopolitical risks.
