LVMH’s soft quarter for fashion
LVMH reported mixed first‑quarter results: group sales fell 6% on a reported basis to €19 billion, even as organic sales grew about 1%, and the company blamed weaker March demand tied to the Iran war’s regional fallout. (finance.yahoo.com) The firm said fashion and leather goods sales fell roughly 2% while wine and spirits rebounded and Champagne stabilised — and shares slid as much as 3% on Tuesday after the update. (nssmag.com) (reuters.com)
LVMH’s biggest business, fashion and leather goods, shrank at the start of 2026 as the Middle East conflict cut luxury spending and tourist shopping. (lvmh.com) (reuters.com) The French group said first-quarter revenue was €19.1 billion, down 6% as reported but up 1% on an organic basis, which strips out currency moves and acquisitions. Fashion and leather goods, the division that includes Louis Vuitton, Dior and Fendi, fell 2% organically to about €9.2 billion. (lvmh.com) (cnbc.com) LVMH said the conflict in the Middle East cut at least 1 percentage point from group sales in the quarter. Reuters reported that weaker spending in Gulf markets and fewer tourists in Europe weighed on March demand. (reuters.com 1) (reuters.com 2) The update landed as investors were looking for a stronger luxury rebound after a long slowdown tied to softer Chinese demand. LVMH said Asia excluding Japan posted strong growth in the quarter, while the United States had a good start to the year and Europe and Japan relied on local customers to offset weaker tourist spending. (cnbc.com) (lvmh.com) Not every division weakened. Watches and jewelry grew 7% organically, helped by Tiffany, and wine and spirits rose 5% as Champagne volumes stabilized and cognac trends improved, according to the company. (lvmh.com) (cnbc.com) Markets focused on the weaker fashion number because that unit is LVMH’s largest profit engine and a readout for the broader luxury sector. LVMH shares fell as much as 3% in Paris trading on Tuesday, April 14, after the sales update. (bloomberg.com) (reuters.com) LVMH was the first major European luxury group to report first-quarter sales, so its results set the tone for rivals including Kering and Hermès. Reuters said the figures were likely to deepen investor concern that Gulf demand, which had helped support luxury spending, is no longer cushioning the sector. (reuters.com 1) (reuters.com 2) For now, LVMH is still posting organic growth at the group level, but the quarter showed that even Louis Vuitton and Dior are not insulated when travel, tourism and Gulf spending all weaken at once. (lvmh.com) (reuters.com)
