The Tamesis
LVMH, often considered a leader in the luxury goods industry, reported on Monday that sales increased organically by 1% in the first quarter of 2026 to 19.12 billion euros.
As for the French conglomerate’s most important fashion and leather goods business, sales fell 2% to 9.25 billion euros. That marked an improvement from the fourth quarter of 2025, when segment sales fell 3%, but missed consensus estimates of a 0.9% decline. Bernstein luxury goods analyst Luca Solca wrote: “LVMH reported better first-quarter results for the fourth quarter of 2025 than last year. But this may not be enough to convince investors to abandon their investments.”
LVMH Chief Financial Officer Cécile Cabanis shared this view at the brand level: “Louis Vuitton and Dior are very close, and Louis Vuitton continues to be more resilient than Dior. [division] Dior’s average has improved a lot compared to previous quarters. Then, Loro Piana still maintains double-digit growth, Rimowa also performs better than average, while other brands are below sector average. “
She emphasizes a positive response to creativity, product novelty, stores and experiences, which increases conversion rates for the group’s largest brands. “The first drop [of Dior’s new creative director] Cabanis told investors that Jonathan Anderson entered stores in the first quarter. “It’s mainly ready-to-wear, not a full collection, so we expect to gradually introduce more products, including bags and shoes. [The collection] It will continue to hit stores next quarter. “
The CFO added that without the impact of the war in the Middle East, global fashion sales would have been essentially flat in March.
The group reported that the ongoing conflict caused the group’s organic growth to decline by approximately 1% in the first quarter. Cabanis said the Middle East accounted for 6% of the group’s sales, with sales in the fashion and leather goods divisions slightly higher. “When the conflict started, in March, there was a shortage and deterioration in demand of 30% to 70%, depending on the mall and the business,” she said.
Regarding current deals in the Middle East, Cabanis added: “What we are seeing today is a significant drop in demand.”
Investors are wondering whether other regions have absorbed the lost demand. “What we haven’t seen yet is repatriation. We know the wealth has not disappeared, so one day we will see that wealth may show up elsewhere and mitigate the impact as the conflict continues,” Cabanis said.
Cabanis said sales in Europe and Japan fell 3% in the quarter, while they grew 3% in the United States and 7% in the rest of Asia, which was the region’s best performance since 2023 “along with the arrival of the Chinese New Year.” She said local spending in China increased during the quarter, while China’s tourism industry continued to improve, although still in negative territory.
By category, watches and jewelry grew 7%, with growth driven by “outstanding performance” at Tiffany and “strong growth” at Bulgari, the company said. Fragrances and cosmetics were flat, with select retail, including multi-brand beauty leader Sephora, up 4%. The wines and spirits segment grew 5% in the quarter as the Champagne business started the year strong, especially in Europe, while Chinese New Year celebrations in the first quarter boosted Cognac sales.
Cabaniss concluded: “We are very pleased with the progress we have made and even though we are in a moment where there is a lot of volatility, we believe our initiatives have been met with a lot of good response and we will continue to make sure we stay focused on that.”
Kering Group and Hermès will also announce their first-quarter financial reports on April 14 and 15 respectively this week. Moncler will release its earnings report on April 21st, Prada will release its earnings report on April 30th, Burberry will release its earnings report on May 14th, and Richemont will release its earnings report on May 22nd.
