LVMH Moët Hennessy Louis Vuitton reported first-quarter revenues fell 5.9 percent to 19.12 billion euros as the conflict in the Middle East capsized a “positive start to the year” in the luxury-loving region, which accounts for roughly 6 percent of its business.
In organic terms, the French luxury giant recorded organic growth of 1 percent. The numbers reflect a 7 percent negative impact because of exchange rate fluctuations, while the Mideast conflict had a negative 1 percent impact on organic growth.
All business divisions recorded single-digit revenue declines, though in organic terms, watches and jewelry gained 7 percent, wines and spirits 5 percent, and selective retailing 4 percent.
The linchpin fashion and leather goods division saw organic revenues dip 2 percent, while perfumes and cosmetics were flat.
The numbers were broadly in line with consensus expectations. HSBC had forecast a 2 percent bump in organic revenues, and a 1 percent improvement in fashion and leather goods.
LVMH, which owns brands including Louis Vuitton, Dior, Givenchy, Sephora and Bulgari, saw overall sales fall 5 percent in the fourth quarter of 2025, with its fashion and leather goods unit posting a 3 percent organic decline in revenues in that period.
A worker assembles a Speedy bag in Louis Vuitton’s famous monogram.
Courtesy of Louis Vuitton
Releasing its first-quarter tallies after the close of trading on the Paris Bourse Monday, LVMH said it “maintained its powerful innovation momentum and showed good resilience in a geopolitical and economic environment that remained disrupted.”
“LVMH remains vigilant yet confident at the start of the year,” it added, noting that “the United States experienced a good start to the year.”
Meanwhile, in Europe and Japan, “resilient local demand helped to partly offset lower tourist spending.”
“Asia, excluding Japan, saw strong growth, confirming the improvement in trends observed starting in the second half of 2025,” the company said.
LVMH blamed the Middle East conflict for the dip in its fashion and leather goods business group, despite the “excellent performance” of Louis Vuitton’s new flagships in Beijing and Seoul, and the first Christian Dior products by new creative director Jonathan Anderson, which “gradually arrived in stores and were immensely popular.”
Meanwhile, Loro Piana “confirmed its excellent performance in the first quarter” and luggage specialist Rimowa “continued to achieve solid growth.”
In watches and jewelry, the company highlighted “an excellent performance” at Tiffany & Co., with its HardWear line posting “very strong” growth, while in perfumes and cosmetics, standout launches included J’Adore Intense and eau de parfum versions of Dior Addict.
A bracelet from Tiffany & Co.’s HardWear collection.
Courtesy of Tiffany & Co.
LVMH trumpeted solid revenue growth and market-share gains for Sephora across all regions, with the U.K. a particular standout. Meanwhile, Champagne enjoyed a “good start to the year, particularly in Europe,” and cognac was boosted by a favorable calendar effect for Chinese New Year.
Despite the volatile geopolitical context, many equity analysts are forecasting a rebound for luxury in 2026.
HSBC has a buy rating on all the luxury companies it covers except Swatch, its optimism underpinned by renewed creativity at key fashion brands, more attractive price points, solid prospects in the U.S. and improvements in China.
Still, most stocks have taken a hit in the wake of the Middle East conflict, low visibility on China’s recovery and, according to TD Cowen, a “slower than expected ramp of newness.”
LVMH, whose share price has sunk about 25 percent year-to-date, is the first luxury group to report first-quarter sales. Kering is scheduled for Tuesday, Hermès International on Wednesday, and Prada Group on April 30.
