LVMH (MC): Fashion and leather goods sales fall 5% in Q3 as China demand slows
On 12 October 2026 LVMH, the French owner of Louis Vuitton, Dior, Sephora and Tiffany, reported third-quarter sales of EUR 18.5bn, up 1% after stripping out currency and company sales and purchases. Its largest business, fashion and leather goods, fell 5%, a worse result than the 2% to 2.5% fall analysts had expected, which the company blamed on weaker demand in China.
What happened
LVMH published its sales for the first nine months of 2026 on Monday 12 October 2026. Sales for the nine months were EUR 57,148m, against EUR 58,090m a year earlier. The company said business in the third quarter was affected by "a less buoyant environment in China, while the United States, Europe and Japan saw good growth". Fashion and leather goods, which includes Louis Vuitton, Dior, Celine and Fendi, saw "the slowdown in demand in China" cut into a business that had been helped by a strong US market. LVMH also said it sold Marc Jacobs to WHP Global on 1 September, and that most of the duty-free chain DFS has been sold.
The other four business groups grew in the quarter. Selective retailing, which is mainly the Sephora beauty chain, grew 8%. Wines and spirits grew 6%, with the company pointing to a continued recovery in champagne, especially in Europe. Watches and jewellery, which includes Tiffany and Bvlgari, grew 6%, and perfumes and cosmetics grew 1%. The release gives sales only and no profit figures. Its outlook says the group "remains confident" despite an uncertain economic and geopolitical environment, but it gives no numerical forecast.
The numbers, explained
"Organic" growth means the change in sales at constant exchange rates and on the same group of businesses as last year, which removes the effect of currency moves and of brands bought or sold. It is the fairest measure of underlying demand. Third-quarter sales were EUR 18,504m against EUR 18,280m, a rise of EUR 224m, or 1.2% (224 divided by 18,280). LVMH says that is made up of organic growth of 1%, a 2% boost from exchange rates and a 2% reduction from changes in scope, mainly the disposals. For the nine months, sales fell 1.6% as reported (942 divided by 58,090), which the company rounds to 2%, but grew 2% organically because the euro's strength cut reported sales by 3%.
Fashion and leather goods is the heart of the numbers. Its third-quarter sales were EUR 8,245m against EUR 8,497m, a fall of EUR 252m, or 3.0% as reported (252 divided by 8,497), and 5% organically. It made up 44.6% of group third-quarter sales (8,245 divided by 18,504). The rest of the group together grew from EUR 9,783m to EUR 10,259m, up 4.9% as reported (476 divided by 9,783). The pace has swung: organic growth in this division was minus 2% in the first quarter, plus 1% in the second and minus 5% in the third. Group sales were in line with analysts' average forecast of about EUR 18.49bn, which is an estimate, not a company figure, but the fashion result missed: Barclays, RBC and HSBC had forecast minus 2% and Jefferies minus 2.5%, as reported by Luxury Tribune.
Why it matters
LVMH makes money by selling goods it designs and often makes itself, through its own shops and websites, at prices that reflect the strength of its brands. Fashion and leather goods is its largest division by sales (EUR 26,391m of EUR 57,148m, or 46.2%, over nine months), so a weak quarter there moves the whole group, even when Sephora and jewellery are growing. The quarter shows how dependent the luxury industry has become on a few big buyers. The company says US demand is strong while demand in China has slowed.
For customers, the release points to new designs rather than any change of approach, naming new collections at Dior, Celine, Fendi, Givenchy and Loewe. For rivals, the figures are a data point rather than a verdict, since each luxury group has its own mix of brands and regions, and they report on their own timetables. The more notable contrast is inside LVMH: businesses selling to a wider range of buyers, such as Sephora and wines and spirits, are growing faster than its flagship handbag and clothing brands. We draw no conclusion about the future from one quarter.
What to watch next
LVMH's release does not give a date for its next report, and we could not confirm one from the company, so we state none. The next figures it publishes will be its full-year 2026 results, which cover profit as well as sales, after the year ends. The numbers to compare then are whether fashion and leather goods returns to growth after minus 5% in the third quarter, and whether the company's wording on China changes. Other luxury groups publish their own results on their own timetables, and we have not verified those dates here.
- Organic growth: change in sales at constant exchange rates and on the same group of businesses as last year.
- Selective retailing: LVMH's shops that sell other companies' products too, mainly Sephora and Le Bon Marche.
Sources
More on LVMH (MC) · Consumer & Retail takes
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