Stock Markets April 13, 2026 12:05 PM

LVMH Q1 Sales Fall Short as Fashion & Leather Goods Underperform

Group reports €19.1 billion in first-quarter revenue; Watches & Jewelry and Wines & Spirits outperform while Fashion & Leather Goods lags

By Derek Hwang
LVMH Q1 Sales Fall Short as Fashion & Leather Goods Underperform

LVMH recorded first-quarter revenue of €19.1 billion, missing analyst estimates and driven by weaker-than-expected results in its Fashion & Leather Goods division. Organic revenue rose 1%, below consensus, with notable strength in Watches & Jewelry and Wines & Spirits partially offsetting the shortfall. The company cited the conflict in the Middle East as a drag on organic growth.

Key Points

  • LVMH's Q1 revenue was €19.1 billion, below analyst estimates of €19.6 billion; organic growth was 1%, missing the 1.95% consensus - impacts the luxury and consumer discretionary sectors.
  • Fashion & Leather Goods, the group's biggest division, declined on an organic basis and fell short of revenue estimates, weighing on overall results - affects apparel and leather goods markets.
  • Watches & Jewelry and Wines & Spirits outperformed expectations, with Tiffany's HardWear line and a favorable Chinese New Year calendar effect for Cognac cited as drivers - benefits luxury accessories and spirits suppliers.

LVMH reported first-quarter revenue of €19.1 billion, coming in below the €19.6 billion analysts had been expecting. On an organic basis, revenue increased 1%, short of the 1.95% consensus. Reported total revenue was down 5.9% year-on-year.

The conglomerate's largest business, Fashion & Leather Goods, underperformed expectations. Organic sales in the division fell 2%, versus analyst forecasts for a near-flat decline of 0.05%. The segment produced €9.25 billion in revenue, an 8.5% decline from the prior year and beneath the estimated €9.48 billion. Management said the conflict in the Middle East exerted a roughly 1% negative impact on organic growth for the quarter.

Following the results, LVMH American depositary receipts slipped 2.7% in New York trading.

Not all divisions disappointed. Watches & Jewelry posted robust organic growth of 7%, ahead of the 4.21% estimate, with Tiffany's HardWear line singled out for particularly strong performance. Wines & Spirits also beat expectations, registering 5% organic growth compared with an anticipated 0.83% decline; the company attributed some of that strength to a favorable Chinese New Year calendar effect for Cognac.

Geographically, Asia excluding Japan delivered 7% organic growth, topping the 4.2% estimate. The United States recorded 3% organic growth, marginally above the 2.9% consensus. Europe was weaker, with a 3% decline versus an expected 0.75% decline.

Other divisions produced mixed outcomes. Perfumes & Cosmetics saw organic revenue flat for the period, below the 1.74% growth estimate. Selective Retailing grew 4% organically, underperforming the 6.2% analyst consensus.

In commentary, the company said it remains vigilant yet confident at the start of the year and reiterated a focus on developing its brands through sustained innovation and investment.


Data recap

  • Q1 revenue: €19.1 billion (est. €19.6 billion)
  • Organic revenue growth: 1% (est. 1.95%)
  • Fashion & Leather Goods: €9.25 billion, -8.5% YoY; organic -2% (est. -0.05%)
  • Watches & Jewelry: organic +7% (est. +4.21%)
  • Wines & Spirits: organic +5% (est. -0.83%)
  • Asia ex-Japan: organic +7% (est. +4.2%); US: +3% (est. +2.9%); Europe: -3% (est. -0.75%)

Risks

  • Geopolitical tensions - the company reported the Middle East conflict reduced organic growth by about 1% for the quarter, introducing uncertainty for consumer demand in affected regions; this risk impacts luxury retail and travel-related spending.
  • Division-level variability - meaningful underperformance in Fashion & Leather Goods versus outperformance in other segments increases revenue volatility across the luxury goods sector.
  • Regional exposure - weaker performance in Europe (-3% organic) versus stronger growth in Asia ex-Japan and the US highlights geographic concentration risks that could influence regional retail and distribution strategies.

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