LVMH (MC) Q2 2026 earnings summary

Executive summary

• Revenue reached €38.6 billion in H1 2026, with 2% organic growth and acceleration in Q2, driven by strong performances in the US and Asia, and resilience in Europe.

• Profit from recurring operations was €8.7 billion, with an operating margin of 22.5%, despite significant negative currency effects.

• Net profit attributable to the Group was stable at €5.7 billion year-over-year.

• Free cash flow stood at €4.1 billion, supporting investments and dividends.

• Growth was driven by product innovation, brand strength, and operational efficiency across divisions.

Financial highlights

• Revenue: €38.6B (+2% organic, -3% reported) in H1; Q2 organic growth accelerated to 3%.

• Operating margin: 22.5%; profit from recurring operations: €8.7B.

• Net income: €5.7B, stable year-over-year.

• Free cash flow: €4.1B; net debt reduced to €8.2B, net debt/equity ratio improved to 11.8%.

• Gross margin: €25.9B, up 30 bps to 67.1%.

Outlook and guidance

• Focus on strengthening iconic brands, enhancing desirability, and operational efficiency.

• Expect Wines & Spirits division to grow at constant currencies in 2026, but at a slower pace than H1; full-year EBIT margin to align with 2025 due to cost phasing and currency impacts.

• Group-wide, anticipate similar FX margin impact in H2 as in H1; revenue may see slight positive FX effect, offset by perimeter changes.

• Continued creative renewal, targeted investments in craftsmanship, and selective investment.

• Interim dividend of €5.50 per share to be paid December 3, 2026.