Following today’s release of LVMH’s figures for the three months ending 31 March 2026; Sharon Iles, senior apparel analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “LVMH’s Q1 FY2026 results demonstrated a small degree of resilience, with the group achieving a muted organic revenue growth of 1%, though reported revenue fell 5.9% to €19.1bn, weighed down by adverse currency movements. However, the results fell short of industry hopes that 2026 would mark a turning point after a protracted downturn, leading the group’s share price to fall slightly in early morning trade, as the war in the Middle East dampened the impact of turnaround plans across the group’s portfolio, including the much-anticipated creative reinvention of Christian Dior under Jonathan Anderson, who took the helm as artistic director earlier this year.
“Asia (excl. Japan) emerged as the standout region, posting a strong organic growth of 7%, thanks to the aggressive retail expansion across China throughout 2025, suggesting the worst of the prolonged luxury slump in China may be over. The Middle East, which sits within LVMH’s Asia (excl. Japan) reporting region, saw the conflict cast a shadow over Q1 through a range of disruptions, including missile strikes on the Gulf that prompted shoppers to avoid the region’s malls, with the group estimating this shaved approximately 1% off organic growth. The US delivered a good start to the year, with sales up 3%, supported by healthy consumer spending and continued appetite for luxury among higher-income shoppers. Europe and Japan proved the weakest regions, with sales in each region falling 3%, as weak economic conditions continued to weigh on consumer sentiment in Europe while Japan suffered from sharp drop in tourist spending.
“At the division level, Fashion & Leather Goods, which accounts for nearly half of group revenue, continued to struggle, marking a seventh consecutive quarter of declines with organic revenue falling 2%, despite high-profile boosts such as Louis Vuitton’s 130th Monogram anniversary and Jonathan Anderson’s widely praised debut collection at Christian Dior. Wines & Spirits returned to an organic growth of 5% after an extended period of decline, as cognac demand in China showed early signs of recovery following a prolonged weakness in demand and prior production constraints. Watches & Jewellery was the standout performer, with organic revenue growing 7%, driven by Tiffany’s ongoing store network renovation and the continued strength of its HardWear line, which posted very strong growth. Selective Retailing, which accounts for around a fifth of group sales, delivered organic growth of 4%, with Sephora gaining market share across all regions and its UK expansion proving a particular success.”
