Luxury demand softens for LVMH
LVMH reported weaker-than-expected early‑year sales and management flagged a deterioration in demand in March, pushing shares lower. First‑quarter organic growth came in around 1% with reported revenues near €19.1 billion, and jewelry and tourist‑dependent segments showed notable weakness. ( )
LVMH opened 2026 with slower-than-expected sales growth, a sign that demand for high-end goods remains uneven after two difficult years for luxury. (lvmh.com) The French group reported first-quarter revenue of €19.1 billion on April 13, with organic growth of 1% and reported sales down 6% because of currency moves. Analysts surveyed by FactSet had expected about 1.5% organic growth, according to CNBC. (lvmh.com, cnbc.com) LVMH said the United States had a good start to the year, while Europe and Japan relied on local shoppers to offset weaker tourist spending. Asia excluding Japan posted strong growth, extending an improvement the company said began in the second half of 2025. (lvmh.com, wwd.com) The weakest point was fashion and leather goods, LVMH’s biggest division and the one investors watch most closely because it includes Louis Vuitton, Dior and Fendi. That unit fell 2% organically to €9.247 billion in the quarter. (lvmh.com, cnbc.com) Other divisions held up better. Wines and spirits grew 5% organically, watches and jewelry rose 7%, perfumes and cosmetics were flat, and selective retailing, which includes Sephora, increased 4% on an organic basis. (lvmh.com) The results landed as investors were looking for clearer proof that luxury demand was recovering after the post-2022 slowdown. CNBC reported that many shoppers pulled back after years of price increases, while Chinese demand, once a major engine for the sector, stayed soft. (cnbc.com) A second pressure point came from the Middle East. LVMH said the conflict there cut about 1 percentage point from its organic growth in the quarter after what it called a very positive start to the year. (lvmh.com, euronews.com) That matters because the region had been one of luxury’s brighter markets as growth elsewhere cooled. WWD reported that the Middle East accounts for roughly 6% of LVMH’s business, and Euronews said sales there fell by double digits during the quarter. (wwd.com, euronews.com) Management still pointed to pockets of strength inside the portfolio. LVMH said Louis Vuitton’s new Beijing and Seoul flagships performed well, Dior’s first products under Jonathan Anderson were popular in stores, and Loro Piana and Rimowa kept growing. (wwd.com) The quarter did not show a collapse in luxury spending, but it did show that recovery is arriving in pieces: stronger in the United States and parts of Asia, weaker in tourist-driven markets and LVMH’s core fashion business. (lvmh.com, cnbc.com, euronews.com)
