LVMH Sales Growth Slows to 1% as Fashion Decline Exceeds Expectations
Key Facts
LVMH's organic revenue growth slowed to 1% in the third quarter of 2026 from the same period a year earlier, as weak Chinese demand weighed on its fashion and leather goods business. The results, announced by the group on 12 October, fell short of analysts' organic growth forecasts, although reported revenue exceeded their estimates. According to the Wall Street Journal, quarterly sales totaled 18.50 billion euros, with organic growth slowing from 3% in the previous quarter. Analysts had expected organic growth of 1.3%, according to a Visible Alpha consensus cited by Reuters. Reported revenue had been forecast at 18.46 billion euros, according to Investing.com, leaving sales above that estimate despite the disappointment on organic growth.
The weakness was concentrated in the fashion and leather goods division, where revenue fell 5% organically in the third quarter, according to the group's business update. The analyst consensus cited by Reuters had pointed to a decline of 1.8%, making the contraction steeper than expected for the business. The company attributed the division's performance to a "slowdown in demand in China," directly explaining the pressures on fashion and leather goods sales during the period. By contrast, the group said in the same statement that the United States, Europe and Japan recorded good growth in the third quarter. This geographical divergence was accompanied by differences across businesses, with fashion and leather goods declining while the group's other divisions continued to post organic growth.
Selective retailing recorded organic revenue growth of 8% in the third quarter, according to LVMH's business update. The group said Sephora continued to gain market share in several countries, as part of its review of selective retailing's performance during the period. In watches and jewelry, revenue rose 6% organically from the same period a year earlier, as the business continued to grow. Wines and spirits also delivered organic growth of 6%, matching the pace reported by watches and jewelry during the quarter. Perfumes and cosmetics revenue grew 1% organically, continuing to expand at a slower pace than selective retailing, watches and jewelry, and wines and spirits.
For the first nine months of 2026, LVMH revenue totaled 57.1 billion euros, according to the figures provided in the group's statement. Revenue grew 2% organically during the period compared with the same period a year earlier, measured on a constant basis. By contrast, reported revenue fell 2% in the first nine months, moving in the opposite direction to the growth recorded under the group's organic measure. LVMH calculates organic growth at constant consolidation scope and exchange rates, according to the definition it uses to present its business performance. The period thus combined an increase in sales at constant consolidation scope and exchange rates with a decline in reported sales compared with the corresponding period a year earlier.
In the market's reaction to the business update, LVMH's U.S.-listed shares fell more than 3% after the results were published. Reuters reported the move on the announcement date, 12 October 2026, following the disclosure of slower organic growth and a contraction in fashion and leather goods. The decline came despite reported revenue beating analysts' forecasts, while the group's organic growth failed to reach the consensus estimate. Fashion and leather goods results also fell short of estimates, alongside growth in other businesses reported by the group in its third-quarter performance update. The update thus combined disappointing group growth and weakness in fashion with continued expansion in selective retailing and watches and jewelry.
In its outlook, LVMH reiterated its confidence despite the pressures it described on demand in China and the performance of fashion and leather goods. The group said in its statement that it "remains confident," after reviewing its results and growth in businesses outside the division that contracted during the quarter. This comes as Kering prepares to report revenue for the same period, according to the date published on the company's financial website. The upcoming announcement covers third-quarter 2026 sales, following LVMH's update showing divergent performance across its businesses and markets. Kering is scheduled to publish revenue on 22 October 2026 after the market close, according to the company's disclosure calendar.