LVMH reported a 3% organic increase in second-quarter sales, reaching €19.52bn, as strong demand from US luxury consumers helped offset the negative impact of the Middle East conflict. Group revenue for the first half of 2026 stood at €38.64bn ($43.93bn), down 3% on a reported basis but up 2% organically year-on-year. Recurring operating profit fell 4% to €8.69bn, while net profit held steady at €5.69bn.
The fashion and leather goods division, which houses Louis Vuitton and Dior, reported 1% organic growth in the second quarter, compared to a 1% decline in the first half overall. Revenue for the division slipped 5% on a reported basis to €18.14bn in the first half, with segment profit falling 7% to €6.19bn, partly due to currency movements. LVMH CFO Cecile Cabanis noted a 'rapid acceleration' in the United States and pointed to a double-digit percentage increase in Dior sales in the US and Japan, attributing Dior's recovery to new creative director Jonathan Anderson's collections.
The Middle East conflict reduced organic growth by one percentage point in the quarter, according to Cabanis. Excluding its impact, LVMH's organic growth would have been 4% in Q2. Overall, group sales in Q2 of €19.5bn slightly beat consensus estimates. LVMH noted that the conflict deterred wealthy shoppers from buying luxury goods, but the company remains confident in its 2026 outlook despite geopolitical uncertainties.
Other divisions also showed strength. Watches and jewellery organic growth reached 9% for the first half and 11% in Q2, with revenue at €5.22bn and profit up 9% to €831m. Wine and spirits saw 5% organic growth in the first half, driven by Hennessy cognac demand improving in China since the Chinese New Year, though US demand remained subdued. Selective retailing posted 5% organic growth to €8.40bn, with profit up 2% to €893m. Perfumes and cosmetics revenue held flat organically at €3.91bn, with profit down 2%.
Geographically, Japan posted half-year growth, Europe held up well, and Asia excluding Japan continued an improving trend that started in the second half of 2025. Cabanis noted that strong stock market performance in the US and South Korea, driven by the AI boom, supported luxury demand, saying 'where there is wealth creation, there is an appetite for luxury goods'. She also dismissed theories that luxury had become a zero-sum game between brands.
Separately, LVMH agreed to sell Marc Jacobs to WHP Global. Sephora expanded into Belgium and Croatia, and DFS agreed separate sales of its Greater China operations, Los Angeles and San Francisco airport concessions, and Okinawa business. Operating profit margins remained stable at 22.5% in the first half.