Louis Vuitton Owner LVMH's Sales Accelerate, Signaling Hope For Luxury Recovery — 2nd Update

By Andrea Figueras

French luxury-goods conglomerate LVMH reported an acceleration in revenue growth for the second quarter and said that its core fashion and leather goods business returned to growth, offering signs of relief for a European luxury sector that has been grappling with a prolonged slump in demand.

The owner of Louis Vuitton and Dior, regarded as a bellwether for the luxury industry, booked sales of 19.52 billion euros, equivalent to $22.20 billion, for the quarter through June. The figure marked a 3% increase in organic terms from a year earlier and compares with the 1% rise it reported in the first three months.

The result surpassed analysts' expectations of 19.45 billion euros, according to a Visible Alpha poll of estimates.

The group's key fashion and leather goods division recorded quarterly sales of 8.9 billion euros, up 1% on year, also improving from the 2% decline it logged in the preceding quarter. The segment returned to growth after several quarters of declines.

The luxury titan, led by French billionaire Bernard Arnault, said that existing disruption in the geopolitical and economic environments has been amplified by the war in the Middle East. Excluding the impact of the conflict, revenue was up 4% in the second quarter.

The industry has been buffeted by the fallout from the U.S.-Israeli war against Iran as it weighs on sales both in the Gulf countries directly impacted by the war and in European markets that have suffered from a squeeze on visitors from the Middle Eastern and Asian countries.

Europe experienced lackluster demand from tourists during the quarter, Chief Financial Officer Cecile Cabanis said in an earnings call.

LVMH's results come after Cartier owner Richemont reported a significant rise in sales for its fiscal first quarter, boosted by resilient demand for jewelry.

Meanwhile, fashion brands are trying to win back shoppers' interest after two years of stagnant sales that followed a pandemic-era boom in luxury spending.

In an effort to excite new interest in high-end fashion, LVMH has overhauled much of its creative team. The group has shifted the creative direction at signature brand Dior, as well as other labels including Celine, Loewe and Fendi.

The company said Dior saw an "excellent start" for the first designs of Jonathan Anderson, who now holds the top creative job at the fashion house.

For the first half, LVMH made a net profit of 5.7 billion euros, flat on year, while profit from recurring operations fell to 8.69 billion euros from 9.01 billion euros previously.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 27, 2026 13:08 ET (17:08 GMT)