LVMH Q1 pressure

LVMH’s first quarter did little to ease the luxury sector’s slump: the group posted 1% organic sales growth, while its biggest fashion division shrank. (lvmh.com) The French group said April 13 that first-quarter revenue was €19.1 billion, down 6% as reported because currency moves cut growth by 7 percentage points. On an organic basis, which strips out currency and deal effects, growth was 1%. (lvmh.com) Fashion and Leather Goods, the division that includes Louis Vuitton and Dior, fell 2% organically and 9% as reported to €9.247 billion. Watches and Jewelry grew 7% organically, Wines and Spirits rose 5%, Selective Retailing gained 4%, and Perfumes and Cosmetics was flat. (lvmh.com) LVMH said the United States had a good start to 2026, Europe and Japan were supported by local demand as tourist spending softened, and Asia excluding Japan posted strong growth after improving in the second half of 2025. The company said the conflict in the Middle East cut about 1 percentage point from first-quarter organic growth. (lvmh.com) That regional split matters for luxury because the industry has spent nearly two years waiting for Chinese demand to normalize and for aspirational shoppers to return. Reuters reported that analysts had expected about 2% growth for LVMH in the quarter, leaving the result below forecasts. (reuters.com) The pressure is heaviest at LVMH because Fashion and Leather Goods is its largest profit engine and the clearest read-through for high-end handbags and ready-to-wear. CNBC reported that the unit’s quarterly sales were about €9.2 billion and that investors had been looking for a cleaner recovery in luxury demand this year. (cnbc.com) LVMH entered 2026 after a weaker 2025, when revenue fell to €80.8 billion from €84.7 billion in 2024 and profit from recurring operations dropped to €17.8 billion from €19.6 billion. The group said January 27 that the United States grew in 2025 while the rest of Asia improved and returned to growth in the second half. (lvmh.com 1) (lvmh.com 2) Bernstein analyst Luca Solca said the latest numbers were “likely not enough to convince investors to step off the fence,” while LVMH finance chief Cécile Cabanis said mall traffic in the Middle East fell between 30% and 70% after the conflict began. Both comments pointed to the same problem: demand has improved in pockets, but not enough to lift the whole sector. (cnbc.com) For now, LVMH is still growing at the group level, but the quarter showed that luxury’s rebound remains uneven and that weakness in handbags and fashion is still setting the tone. (lvmh.com)