LVMH (MC) Q1 2026 earnings summary

Executive summary

• Organic revenue grew 1% year-over-year in Q1 2026 to €19.1 billion, despite a 7% negative currency impact and a 1 percentage point drag from the Middle East conflict; excluding this, organic growth would have been 2%.

• Strong growth was seen in Asia (excluding Japan) and the U.S., with robust Chinese New Year sales and positive responses to product innovation, especially in Fashion & Leather Goods and Jewelry.

• All business segments showed resilience, with Watches & Jewelry and Wines & Spirits leading organic growth.

• The group remains confident in its growth outlook, focusing on iconic products, creativity, and unique retail experiences, while acknowledging ongoing macroeconomic volatility.

Financial highlights

• Q1 2026 group revenue reached €19.1 billion, up 1% organically but down 6% reported due to a -7% currency impact.

• Wines & Spirits revenue was €1.27 billion (+5% organic, -2% reported); Fashion & Leather Goods €9.25 billion (-2% organic, -9% reported); Perfumes & Cosmetics €2.04 billion (flat organic, -6% reported); Watches & Jewelry €2.44 billion (+7% organic, -2% reported); Selective Retailing €4.05 billion (+4% organic, -3% reported).

• Asia (excluding Japan) grew 7% at constant currencies; Europe and Japan declined 3%; U.S. improved to +3%.

• Geographic mix: Asia (excl. Japan) 32%, US 23%, Europe (excl. France) 16%, France 7%, Japan 8%, Other 14%.

Outlook and guidance

• Management expects continued volatility but remains confident in growth, emphasizing efficiency, resilience, and selective investments.

• Q2 growth in Fashion & Leather Goods could be low single digit if current trends persist and Middle East impact does not worsen.

• Margin stabilization requires 3-4% organic growth; currency headwinds expected to reduce margin by ~80 basis points in H1.

• Relies on geographic revenue balance and business diversity to strengthen global leadership.