LVMH fashion sales decline as Middle East disruption impacts performance

LVMH reported first quarter 2026 revenue of €19.1 billion (£16.6 billion), indicating stable overall performance despite ongoing geopolitical and economic uncertainty, including disruption linked to the conflict in the Middle East.

The Fashion & Leather Goods division declined 2% on an organic basis, reflecting softer demand linked to regional instability.

Within this segment, Christian Dior benefited from positive reception to recent collections, including early designs by Jonathan Anderson, while Loro Piana continued to grow.

Several brands - including Celine, Loewe, Givenchy and Fendi - underwent creative leadership transitions during the period. Rimowa reported steady performance.

Other business segments showed comparatively stronger results. Watches & Jewelry grew 7% on an organic basis, supported by demand at Tiffany & Co and Bvlgari, with Chaumet also contributing through product line expansion.

The Perfumes & Cosmetics division remained broadly stable, supported by ongoing product launches, particularly within Parfums Christian Dior, as well as developments in its Forever and Backstage makeup lines.

Selective Retailing recorded 4% organic growth, driven primarily by Sephora, which continued to expand internationally and increase market share, including in the UK.

Regionally, the United States delivered a solid start to the year. Europe and Japan were supported by domestic demand, which helped offset weaker tourism flows.

Asia (excluding Japan) returned to growth, continuing the improvement seen in the second half of 2025.

The Middle East experienced disruption in March due to the conflict, which reduced overall organic growth for the quarter by approximately 1%.

Looking ahead, LVMH stated that it remains attentive to the evolving environment while continuing to focus on brand development through investment, product innovation, and controlled distribution.