LVMH Accelerates in the Second Quarter of 2026, Driven by the United States and Jewellery

LVMH posted sales of 38.6 billion euros in the first half of 2026, down 3% on a reported basis but up 2% on a like-for-like basis (adjusted for changes in scope and exchange rates). Recurring operating income fell by 4% to 8.7 billion euros, driven in particular by unfavorable currency movements, but the operating margin nevertheless remained high at 22.5%. Cash flow increased by 2% to 4.1 billion euros. It had surged by 29% in the first half of 2025. Although lower, this still signals stricter management of inventory and investments.

After 1% organic growth in the first quarter, the group grew by 3% in the second quarter, with quarterly revenue of 19.5 billion euros. Excluding the impact of the conflict in the Middle East, LVMH estimates that this growth would have reached 4%.

This growth slightly exceeded the expectations of several analysts, who had forecast organic growth of approximately 2% to 2.6% for the second quarter. The stock market was primarily looking for signs of improvement in Fashion and Leather Goods, confirmation of the U.S. recovery, and the group’s ability to maintain its margins—all of which materialized.

The second-quarter performance was largely driven by the United States, where LVMH’s sales grew by 6% on an organic basis, following a 3% increase during the first three months of the year. U.S. demand thus offset weaker activity in Europe and the Gulf region, which were affected by the conflict in the Middle East and the war-related decline in tourism.

The improvement in the U.S. is particularly evident in Fashion and Leather Goods. LVMH cites a “sharp acceleration” in the country, driven notably by Jonathan Anderson’s first collections for Dior. Louis Vuitton is also benefiting from the resilience of local customers, while U.S. consumers continue to support Sephora and the major jewelry houses.

Fashion and Leather Goods, LVMH’s leading business segment and the group’s main source of profits, is showing a still-limited improvement. After a 2% organic decline in the first quarter, sales rose by 1% in the second quarter, compared with a 9% drop in the same period in 2025.

This return to positive territory ends seven consecutive quarters of decline, but the performance remains slightly below consensus estimates, which had anticipated growth of around 1.7%. For the half-year as a whole, the division’s sales declined by 1% on an organic basis to 18.1 billion euros.

LVMH attributes the improvement in particular to Jonathan Anderson’s first collections at Dior—whose commercial launch is deemed encouraging—as well as to the performance of Louis Vuitton’s new flagship stores in Beijing and Seoul. Loro Piana also continued to grow, as did Rimowa.

Watches and Jewelry were the main positive surprise of the half-year. The division posted organic growth of 7% in the first quarter, followed by 11% in the second—the strongest growth across all of LVMH’s businesses. Over the six-month period, its sales rose 9% on an organic basis and 3% on a reported basis, to 5.2 billion euros. Recurring operating profit also increased by 9%, to 831 million euros.

This growth is primarily attributable to the jewelry segment. Tiffany & Co. benefited from the expansion of its iconic collections, notably Knot and HardWear, as well as the renovation of its store network. Bvlgari, for its part, posted strong growth, setting a new sales record for its Eclettica collection of fine jewelry and luxury watches.

The performance significantly exceeded pre-earnings estimates. Barclays had anticipated 8% organic growth for the division in the second quarter, while LVMH ultimately achieved 11%.

It also confirms a broader trend in the luxury market: in an environment that remains challenging for fashion and leather goods, jewelry is emerging as a more resilient category, driven by a heightened perception of the heritage value of the pieces.

In watchmaking, LVMH remains more reserved about brand-specific performance. The press release primarily highlights TAG Heuer’s visibility through its partnership with Formula 1. The division’s growth therefore appears to stem primarily from Tiffany and Bvlgari rather than from a uniform recovery across all watch brands.

Selective Retail grew by 6% on an organic basis in the second quarter, following 4% growth in the first. Wines and Spirits also posted organic growth of 5% over the two quarters. The segment’s current operating income rose by 11%, thanks to early signs of a recovery in champagne and cognac sales. Hennessy, in particular, benefited from improved demand in China.

Perfumes and Cosmetics, however, remained flat on an organic basis for the half-year and declined by 1% in the second quarter.

The first half of 2026 thus shows signs of improvement and can be viewed as a turning point in trends.

At the close of the Paris Stock Exchange on July 27, 2026, following the release of the figures, LVMH shares (Euronext Paris) closed at 466.80 euros, up 1.10% from the previous trading session.

It should be noted that since the beginning of the year, the market capitalization of the leading luxury group has fallen by nearly 30%.