LVMH, usually thought of the bellwether for the luxurious sector, reported on Monday that first-quarter gross sales grew 1% on an natural foundation to €19.12 billion in 2026.
As for the French conglomerate’s all-important style and leather-based items enterprise, gross sales dropped 2% to €9.25 billion. This marks an enchancment on the fourth quarter of 2025, when divisional sales declined 3%, however lands under consensus expectations of a 0.9% fall. “LVMH has reported a greater first-quarter replace than it closed final 12 months in This fall 2025. However that is possible not sufficient to persuade traders to step off the fence,” wrote Bernstein luxurious items analyst Luca Solca.
LVMH CFO Cécile Cabanis shared the view on the model stage: “Louis Vuitton and Dior are very shut to one another, with Louis Vuitton persevering with to be extra resilient than the [division] common and Dior bettering rather a lot versus earlier quarters. Then, you have got Loro Piana nonetheless rising double digits, Rimowa additionally outperforming the common, and the remainder of the manufacturers under the division common.”
She careworn a constructive response to creativity, product newness, shops, and experiences, which improved conversion fee throughout the group’s largest manufacturers. “The primary drop [of Dior’s new creative director] Jonathan Anderson got here within the shops in Q1,” Cabanis instructed traders. “It was largely ready-to-wear and it was not the complete assortment, so we count on extra to return steadily, additionally on the baggage and the sneakers. [The collection] will proceed to return to the shops within the coming quarter.”
The CFO added that international style gross sales in March would have been broadly flat if not for the results of the war in the Middle East.
The group reported that the continued battle lowered natural progress for the conglomerate by roughly 1% in Q1. The Center East accounts for six% of group gross sales, and barely extra for the style and leather-based items division, in response to Cabanis. “When the battle began, and within the month of March, there was a shortfall and a deterioration of demand between 30% and 70%, relying on the department stores, relying on the companies,” she stated.
On present buying and selling within the Center East, Cabanis added: “What we see at this time is that demand could be very a lot down.”
Traders needed to know whether other regions had absorbed the lost demand. “ What we now have not seen but is repatriation. And what we all know is that wealth has not evaporated, so there shall be a time the place we’ll see that coming most likely elsewhere and mitigate the impression ought to the battle proceed,” Cabanis stated.
Gross sales in each Europe and Japan had been down 3% within the quarter, whereas the US grew 3% and the remainder of Asia grew 7% — the most effective efficiency within the area since 2023 “with a very good Chinese language New Yr”, in response to Cabanis. Native China spend elevated within the quarter, whereas Chinese language tourism continued to enhance, albeit remaining unfavourable, she stated.
By class, watches and jewellery grew 7%, led by Tiffany’s “wonderful efficiency” and Bvlgari’s “sturdy progress”, in response to the corporate. Perfumes and cosmetics had been flat, selective retailing, which incorporates multi-brand magnificence chief Sephora, was up 4%. The wines and spirits division was up 5% for the quarter, citing a robust begin to the 12 months for the champagne enterprise, notably in Europe, whereas cognac gross sales had been boosted by Chinese language New Yr celebrations touchdown in Q1.
Cabanis concluded: “We’re more than happy with the progress, even when we’re in a second the place there may be loads of volatility, however we belief that we’ve been having numerous good response on our initiatives, and we’ll proceed to ensure we concentrate on that.”
Kering and Hermès are additionally to report their first-quarter earnings this week, on April 14 and 15, respectively. Moncler is to publish its earnings on April 21, Prada on April 30, Burberry on Might 14, and Richemont on Might 22.
