LVMH: Sales Down 6%, But Organic Growth Holds Strong
LVMH reported sales of 19.1 billion euros in the first quarter of 2026, a 6% decrease in reported figures but a 1% increase in organic growth. This discrepancy reflects the combined impact of unfavorable exchange rates (?7%) and geopolitical disruptions, particularly in the Middle East, which weighed about 1% on the quarter's growth.
Financial Performance in Detail
LVMH recorded revenues of 19.1 billion euros in the first quarter of 2026, a decrease of 1.2 billion euros compared to the 20.3 billion achieved in the same quarter of 2025. In reported figures, this contraction is ?6%. However, the group showed a 1% increase in organic growth, indicating an underlying demand more resilient than the raw numbers suggest. This difference is explained by a ?7% currency effect, with no perimeter effect. The United States had a strong start to the year. In Europe and Japan, local demand partially offset the decline in tourist spending. Asia, excluding Japan, confirmed an improvement, showing strong growth. The Middle East, after a very positive start to the year, was impacted in March by the conflict, which accounts for about 1% of the quarterly organic growth.
Performance Across Divisions
LVMH's five operational divisions recorded mixed performances. Fashion and Leather Goods declined by 2% organically, dropping from 10.1 billion euros to 9.2 billion, affected by the geopolitical conflict in the Middle East. Wines and Spirits grew by 5% organically (1.3 to 1.3 billion in reported figures, ?2% reported), benefiting from a favorable calendar around the Chinese New Year and a strong champagne dynamic. Perfumes and Cosmetics remained stable organically (2.0 to 2.2 billion in reported figures, ?6% reported), supported by strategic launches in the Christian Dior segment. Watches and Jewelry showed the best improvement with +7% organically (2.4 billion, ?2% reported), driven by excellent performance from Tiffany & Co. Selective Retailing progressed by 4% organically (4.0 billion, ?3% reported), with Sephora experiencing solid growth across all regions and gaining market share.
Future Investments and Strategy
LVMH confirms its intention to continue investing in innovation and creativity. In Fashion and Leather Goods, new creatives (Jonathan Anderson at Dior, Michael Rider at Celine, Jack McCollough and Lazaro Hernandez at Loewe) are successfully rolling out their collections. Tiffany is accelerating the expansion of its boutique network. Sephora continues its growth in the UK and key regions. Beyond the results, the group remains confident in 2026 despite a disrupted geopolitical context, relying on the geographical diversity of its activities, the quality of its creations, and the selectivity of its distribution. The main challenge for investors lies in the group's ability to confirm this organic resilience once the effects of exchange rates and geopolitical issues are resolved, particularly in the Fashion and Leather Goods division, historically its growth engine.
