LVMH Fashion Division Reports First Quarterly Sales Increase in Two Years
LVMH's fashion and leather goods division reported a 1 percent increase in organic sales to €9.01 billion for the second quarter, ending seven consecutive quarters of declines. The unit includes major brands like Louis Vuitton, Dior, and Loro Piana. This growth came against a backdrop of weak demand over recent years but aligned with analyst expectations as luxury brands increasingly rely on ultra-wealthy clients amid inflationary pressures. LVMH's overall group net profit remained flat at €5.70 billion in the first half of 2026, exceeding forecasts. The watches and jewelry segment saw a strong performance with an 11 percent rise in organic sales, while perfumes and cosmetics declined by 1 percent. LVMH is also strategically divesting assets to focus on brand reboots under new creative leadership at several key houses. Bernard Arnault highlighted the success of recent design launches and store openings as contributing factors to growth. Analysts note that luxury brands must now rely more heavily on innovation and relevance to retain a shrinking base of high-net-worth consumers.