LVMH's Q3 organic growth slows to 1%, below expectations
Quarterly revenue of €18.50 billion matched forecasts, but organic growth fell short of the roughly 1.5% analysts had expected.
Published
LVMH reported third-quarter revenue of €18.50 billion, in line with consensus estimates of €18.5 billion. Organic revenue growth came in at 1%, below the roughly 1.5% analysts had expected.
The result marks a slowdown from earlier in the year. In the first half of 2026, LVMH's organic growth was 2%, accelerating to 3% in the second quarter alone, according to Yahoo Finance. The group's Fashion and Leather Goods division, which generated roughly three-quarters of its recurring operating profit last year according to Reuters Breakingviews, had returned to 1% organic growth in the second quarter after a 2% decline in the first. HSBC had projected the division to contract 2% in the third quarter, citing pressure from both China and tough comparisons in the US, according to a preview cited by boerse-global.de.
A year earlier, in the third quarter of 2025, LVMH posted the same 1% organic growth rate, with Fashion and Leather Goods posting its fifth consecutive quarterly decline, down 2% to €8.5 billion, according to Worldfootwear. LVMH shares had fallen roughly 40% year to date heading into Monday's report, Newsquawk reported, as investors weighed subdued demand in China.
The gap between the clean headline number and the softer underlying growth rate suggests pricing and product mix are still doing more work than volume, a pattern that has defined the slowdown in luxury since 2023. The result offers little fresh signal on whether demand in China or the US is turning: in the first half of the year, growth had picked up in the US while Asia excluding Japan continued an improving trend that started in the second half of 2025, according to Yahoo Finance. That leaves the broader question of a luxury recovery unresolved rather than settled either way.