LVMH fashion and leather goods sales fall 5% — Channel NewsAsia

In China, weakening demand for luxury goods affected LVMH’s results: in the third quarter of 2026, organic sales in the group’s fashion and leather goods division fell by 5% year-on-year. This division includes brands such as Louis Vuitton and Dior, Channel NewsAsia reports.

Result falls short of expectations

The decline was deeper than analysts’ forecast, which projected a 1.8% drop in the three months to September. In the previous quarter, the key LVMH division posted growth for the first time in two years.

Overall, LVMH’s organic sales rose 1% in the third quarter, to €18.5 billion. Analysts had expected growth of 1.3%. The group’s result was supported by strong demand for jewellery and sales in the selective retail segment, including at the Sephora chain.

LVMH Chief Financial Officer Cécile Cabanis said changes in the macroeconomic backdrop for Chinese consumers were delaying the recovery but did not indicate structural obstacles to it. According to her, the company simply needs more time.

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US partly offsets downturn in China

LVMH sales in Asia excluding Japan fell 5% year-on-year, primarily because of China. At the same time, sales growth in the United States slowed from 6% in the second quarter to 5% in the third. Citibank data also showed that spending on luxury goods in the US declined by at least 4% in each of the past three months.

LVMH watch and jewellery sales rose 6%, as did sales at the Moët Hennessy wines and spirits division. The company said Dior has particularly strong demand for designer Jonathan Anderson’s new ready-to-wear and leather goods collections.

Jefferies analyst James Grzinic said that the incident involving Louis Vuitton’s lawsuit against tea chain Molly Tea over trademark infringement may, in his view, have significantly affected the brand’s trends in China. Louis Vuitton was criticised for claiming rights to a four-petalled flower design resembling traditional Chinese motifs. Cabanis also said one-off logistics problems worsened Louis Vuitton’s quarterly performance by about one percentage point.