LVMH Moët Hennessy Louis Vuitton reported a 1% organic revenue increase for the first quarter of 2026, reaching approximately €19.1 billion. This figure fell short of the 2% growth analysts had predicted, signaling a period of adjustment for the luxury conglomerate.
Regional challenges significantly impacted the results. The Middle East experienced a double-digit sales decline, primarily attributed to the Iran war, which shaved 1% off the total group growth. Losses in European and Japanese markets also offset stronger performance in the US and Asia-Pacific.
The fashion and leather goods division saw a 2% organic sales decline, despite resilience from Louis Vuitton and strong improvements at Dior. High-end brand Loro Piana showed double-digit growth, driven by demand for "quiet luxury." Conversely, wines and spirits revenue rose 5%, boosted by strategic cognac shipments and a stable champagne market. The watches and jewellery sector posted a 7% increase, driven by Tiffany and BVLGARI.
Analysts remain cautiously optimistic. Deutsche Bank lowered its price target for LVMH shares to €600 but maintained a "Buy" rating, while reducing its 2026 earnings per share forecast by 3% due to weaker fashion sales and tighter margins.