LVMH Q1 wobble

LVMH started 2026 with slower-than-expected growth, reporting first-quarter revenue of €19.1 billion and organic sales growth of 1% on April 13. (lvmh.com) That 1% organic gain missed the 1.5% growth analysts surveyed by FactSet had expected for the March quarter, and LVMH said the conflict in the Middle East cut about 1 percentage point from growth. (cnbc.com) On a reported basis, sales fell 6% from €20.3 billion a year earlier, with LVMH saying exchange-rate moves had a negative 7% effect. The company said the United States had a good start to the year, while Europe and Japan relied on local demand to offset weaker tourist spending. (lvmh.com) The weak spot was Fashion and Leather Goods, LVMH’s biggest division, which includes Louis Vuitton, Dior and Fendi. That unit posted €9.25 billion in revenue and a 2% organic decline in the quarter. (lvmh.com); (cnbc.com) Other businesses held up better. Watches and Jewelry grew 7% organically, Wines and Spirits rose 5%, Selective Retailing gained 4%, and Perfumes and Cosmetics were flat. (lvmh.com) The quarter lands as luxury groups were trying to build on a recovery after a long slowdown tied to weaker Chinese demand and customer pushback after years of price increases. CNBC reported that luxury stocks had already been sliding since the Iran war began in late February. (cnbc.com); (cnbc.com) Two days after LVMH reported, Hermès and Kering added to the sector’s troubles. Hermès said first-quarter revenue reached €4.1 billion with 5.6% growth, below a 7.1% analyst estimate, while Kering reported €3.57 billion in revenue and said Gucci sales fell 8% organically. (cnbc.com); (finance.hermes.com) Hermès said its wholesale business was “significantly affected” by lower sales to concession stores in the Middle East and at airports. Kering said retail revenue in the Middle East fell 11% in the quarter after growth in the first two months of the year. (finance.hermes.com); (cnbc.com) Markets reacted fast. CNBC reported Hermès shares fell 8.2% and Kering closed down 9.3% on April 15, while LVMH’s United States-listed shares fell more than 4% after its April 13 update. (cnbc.com); (cnbc.com) For LVMH, the first quarter did not show a collapse. It showed a luxury leader still growing, but only barely, in a market where war, currency swings and softer travel spending are now showing up line by line in sales. (lvmh.com); (cnbc.com); (cnbc.com)