LVMH fashion and leather goods sales fall 5%, worse than expected
Key Facts
Global sales at LVMH's fashion and leather goods division fell 5% organically in the third quarter of 2026, according to the group's statement, a steeper contraction than analysts had expected. Estimates cited by Reuters had pointed to a 1.8% decline in the division's sales, leaving its performance weaker than anticipated. Group sales continued to grow organically by 1% over the same period despite the decline in fashion and leather goods. However, that increase also fell short of the 1.3% analyst consensus compiled by Visible Alpha, according to Reuters. The quarter's results thus missed expectations at both the group and division levels, with overall growth continuing despite the contraction in fashion and leather goods sales.
Among the other businesses, selective retailing posted organic sales growth of 8% in the third quarter, according to the group's statement, outpacing the other divisions' reported growth rates. Wines and spirits sales rose 6% organically, moving in the opposite direction to fashion and leather goods. Watches and jewellery recorded an identical organic increase of 6% over the same period. Perfumes and cosmetics posted organic growth of 1%, a slower pace than selective retailing, wines and spirits, and watches and jewellery. The quarterly performance thus combined growth in these businesses with a contraction in fashion and leather goods, with selective retailing leading the gains and wines and spirits matching watches and jewellery in growth.
Geographically, Asian sales fell 5% year on year in the third quarter, according to Reuters, while U.S. sales rose by the same percentage. The decline in Asian sales coincided with weak Chinese demand, which was one reason for the downturn in fashion and leather goods. The U.S. market, meanwhile, continued to record sales growth, delivering a different performance from Asia over the same period. The percentage changes in the two regions were equal in magnitude but opposite in direction. This geographic divergence coincided with differences across the group's businesses, whose quarterly results combined a decline in fashion and leather goods with growth in other divisions.
Group revenue totalled 57.1 billion euros over the first nine months of 2026, according to its statement, with organic and reported performance moving in different directions. Revenue rose 2% organically compared with the same period a year earlier. Reported revenue, by contrast, fell 2% over the same period despite the organic increase. Revenue for the nine-month period thus showed organic growth while the reported figure remained below its year-earlier level. Cumulative organic growth was higher than the pace in the third quarter alone, when the group continued to expand more slowly than over the longer period.
The group had recorded organic revenue growth of 3% in the second quarter of 2026, according to its July letter to shareholders. Fashion and leather goods sales returned to organic growth during that quarter before contracting again in the following quarter. The third-quarter results thus followed an earlier improvement across both the group and its fashion and leather goods business. Overall revenue continued to grow between the two periods, but at a slower pace than in the preceding quarter. Fashion and leather goods, however, shifted from a return to growth to a renewed decline, leaving the division's performance at odds with the group's continued organic expansion.
In trading, LVMH's Paris-listed shares fell 1.5% at 0850 GMT during the session on Tuesday, 13 October 2026, according to a Reuters update. The shares declined after sales results missed analysts' expectations for both the group and its fashion and leather goods business. The share price fall accompanied continued growth in overall sales, although that increase remained below the level expected for the quarter. The contraction in fashion and leather goods was deeper than analysts had estimated, while overall group sales maintained an upward trend. The session thus combined a share price loss with mixed quarterly results, as overall growth accompanied weakness in the division.
Chief Financial Officer Cecile Cabanis said Louis Vuitton's recovery "takes some time", according to Reuters. She said the brand had avoided drastic measures such as price cuts while focusing on longer-term initiatives. This approach follows the fashion and leather goods division's return to contraction after its improvement in the preceding quarter. Cabanis linked her comments on the recovery to the time those initiatives require, with price cuts remaining outside the measures the brand had taken. According to the group's calendar published in its letter to shareholders, the next announcement of annual results for 2026 is scheduled for January 2027.