What: LVMH’s fashion and leather goods division returned to quarterly growth after two years of declines, signalling a selective luxury recovery.

Why it is important: The results show that luxury recovery is becoming more selective, with growth depending on VICs, innovation, experiences and disciplined portfolio management.

LVMH’s fashion and leather goods division returned to growth in the second quarter of 2026 after seven consecutive quarters of decline. Organic sales in the unit, which includes Louis Vuitton, Dior and Loro Piana, rose 1% to €9.01 billion, helped by an easier comparison with the previous year, when sales fell 9%. Group revenue was flat at €19.52 billion in the quarter, or up 3% organically. First-half net profit was stable at €5.70 billion, while profit from recurring operations fell 4% to €8.69 billion, giving an operating margin of 22.5%. Watches and jewellery performed strongly, with organic sales up 11%, while selective retailing rose 6% and wines and spirits continued recovering. LVMH is reshaping its portfolio by selling or divesting assets including Marc Jacobs, Stella McCartney, Off-White and parts of DFS. It is also focusing on creative renewal at Dior, Celine, Fendi and Loewe, while expanding experiential luxury through Formula 1 dining and Louis Vuitton’s classic car rally.

IADS Notes: LVMH’s return to growth in fashion and leather goods marks a notable improvement from the downturn tracked in notionnews over the past year, but it also confirms that luxury recovery remains selective. In July 2025, WWD reported that LVMH’s first-half net profit fell 22%, with fashion and leather goods down 9% in the second quarter and Japan under pressure, making the latest 1% rise more significant. WWD’s January 2026 coverage of LVMH’s 2025 results showed the group entering the year with weak sales, regional disparities, jewellery resilience, selective retailing momentum and a growing focus on divestments, digital innovation and experiential retail. BCG’s July 2026 True-Luxury Global Consumer Insights report similarly described a recovery shaped by selective consumers, top-tier clients, domestic spending, experiential luxury and renewed emphasis on design, craftsmanship, quality and timelessness. The Financial Times reported in May 2026 that LVMH was shifting from buyer to seller, reviewing assets such as Marc Jacobs and Fenty, closing 24S and selling DFS operations to sharpen profitability and focus. Retail News Asia’s October 2025 coverage of LVMH’s Asia strategy also showed how immersive pop-ups, local partnerships, digital engagement and AI-powered personalisation are being used to reach younger, experience-driven consumers.

LVMH saw organic sales increase 1% in 2026 Q2