LVMH Q2 Organic Revenue Up 3% as US Market Recovery Accelerates, Jewelry and Leather Goods Show Resilience

LVMH, the world's largest luxury goods group, announced its second-quarter and first-half results for 2026. Organic revenue in the second quarter rose 3% year-on-year, and would have been 4% excluding the impact of the Middle East conflict. The division, which includes brands such as Louis Vuitton and Dior, benefited from an accelerating recovery in the US market and market acceptance of the first designs by Dior's new creative director, Jonathan Anderson. Tourism shopping demand in the Middle East was hit by the conflict, limiting growth potential.

For the first half, the group posted revenue of 38.644 billion euros, down 3% year-on-year but up 2% on an organic basis. Recurring operating profit was 8.691 billion euros, a decline of 4%, and net profit was 5.697 billion euros, roughly flat compared with the same period in 2025. The operating margin remained high at 22.5%, and operating cash flow reached 4.1 billion euros. Regionally, the US market posted organic sales growth of 6% in the second quarter, Europe was stable, Japan grew 14%, and Asia excluding Japan grew 4%.

The fashion and leather goods division generated first-half revenue of 18.146 billion euros, down 5% year-on-year, but organic revenue in the second quarter recovered to 1% growth. Louis Vuitton's second-quarter performance was in line with the division average, with strong results from new flagship stores in Beijing and Seoul. Dior's second-quarter growth was slightly above the division average, with its Cigale handbag proving popular among consumers. Tiffany continued to boost sales by strengthening classic collections such as Knot and HardWear, while Bulgari's high-jewelry and high-end watch series Eclettica set a sales record.

The luxury industry recovery remains uneven. Recent tourism consumption in the Middle East has been further weighed down by geopolitical conflicts, dragging on the sector's recovery. In contrast, jewelry, high-end leather goods, and classic products with strong brand influence continue to show resilience.