LVMH Q1 sales dip
LVMH reported weaker-than-expected first-quarter sales, signaling softness in luxury demand across fashion brands. The group said Q1 revenues fell 5.9% to €19.12 billion and Reuters noted the Iran war shaved at least 1% off total group sales, with Fashion & Leather Goods cited as underperforming ( ). Vogue added that Fashion sales dropped 2% but flagged a “good start for Jonathan Anderson’s products at Dior,” showing mixed brand-level results (vogue.com).
LVMH opened 2026 with weaker sales than investors expected, as the owner of Louis Vuitton and Dior said first-quarter revenue fell 5.9% to €19.12 billion. (lvmh.com) On an organic basis, which strips out currency moves and acquisitions, sales rose 1% in the quarter ended March 31, below analyst expectations of about 1.5% growth. LVMH said exchange-rate effects cut reported revenue by 7%. (cnbc.com; lvmh.com) The group said the conflict in the Middle East reduced quarterly organic growth by about 1 percentage point, after sales in the Gulf weakened and high-spending tourists from the region pulled back in Europe. Reuters reported the war began with United States-Israeli airstrikes on Iran on February 28. (wtaq.com; cnbc.com) The main drag came from Fashion and Leather Goods, LVMH’s biggest division, where organic sales fell 2% in the quarter. LVMH said the business was “impacted by the conflict in the Middle East,” while Vogue reported an uneven brand picture inside the division. (lvmh.com; newsminimalist.com) That matters because LVMH is the sector’s biggest bellwether, and luxury groups have spent more than two years waiting for demand to recover after a post-2022 slowdown tied in part to weaker Chinese spending. Analysts still broadly expect 2026 growth, but this update pushed back hopes for a clean rebound. (cnbc.com; wtaq.com) LVMH said most categories and regions, including China, improved when the Middle East disruption is excluded. That left investors with a split picture: demand looked somewhat better underneath, but geopolitics still erased part of the gain. (wtaq.com; finance.yahoo.com) Other divisions held up better. Wines and Spirits grew 5% organically, Watches and Jewelry rose 7%, and Selective Retailing, which includes Sephora, increased 4%. (lvmh.com) At brand level, Vogue reported a “good start” for Jonathan Anderson’s products at Dior, while Louis Vuitton stayed resilient and Loro Piana and Rimowa outperformed. Those gains were not enough to offset the broader slowdown in the core fashion business. (vogue.com; newsminimalist.com) LVMH told investors it remains “vigilant yet confident” at the start of the year. The next few quarters will show whether improving demand in China and Europe can outweigh a war-driven hit that already cut into the group’s first-quarter sales. (lvmh.com; cnbc.com)
