LVMH: Fashion and Leather Goods Sales Fall in the Third Quarter of 2026

Behind this stability, the group’s core business is weakening. The fashion and leather goods division, which includes Louis Vuitton and Dior, recorded sales of €8.2 billion, down 5 per cent on an organic basis. It was expected that there would be a decline, but on a smaller scale: Barclays, RBC and HSBC forecast −2 per cent, whilst Jefferies forecast −2.5 per cent. The division has fallen again, following the modest rebound in the second quarter (+1 per cent), which was its first quarterly increase in two years. The group attributes this decline to the “slowdown in demand in China”, against a context deemed less favourable in the country. The United States, Europe and Japan, on the other hand, are posting strong growth.

Several positive signs are nevertheless emerging from the fashion houses. LVMH highlights “the great success of Jonathan Anderson’s designs at Christian Dior. Demand is particularly strong for his ready-to-wear and leather goods ranges”. A new House of Dior in Milan was also opened last September. Louis Vuitton, for its part, is celebrating the 130th anniversary of the Monogram.

The other divisions have kept the group afloat. Selective retail (Sephora) grew by 8 per cent on an organic basis, to €4.1 billion. Watches and jewellery rose by 6 per cent, to €2.5 billion, confirming their momentum following a 9 per cent increase in the first half of the year. The press release highlights that “Bvlgari and its new line of fine jewellery and prestige watches, Eclettica, generated a new sales record.” Wines and spirits continued their recovery (+6 per cent, to €1.4 billion), whilst perfumes and cosmetics remained virtually stable (+1 per cent, to €2 billion).

Currency effects were favourable for the quarter (+2 per cent), but changes in the scope of consolidation had a negative impact of −2 per cent, due in particular to the disposals of DFS and Marc Jacobs.

This announcement comes against a difficult backdrop, heavily impacted by geopolitical instability, particularly in the Middle East. For fashion and leather goods, the most pessimistic scenario has therefore been avoided, which is likely to reignite the debate over LVMH’s ability to return to growth in its flagship division by 2027. Nevertheless, “the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, the excellence of its distribution network and the responsiveness of its organisation”, explains the press release.