LVMH fashion and leather goods sales fall 5% on weak China demand

LVMH’s third-quarter 2026 organic sales came in below expectations, Euronews reported on October 13, 2026. Its fashion and leather goods division, which includes Louis Vuitton and Dior, fell 5% on an organic basis, against an expected decline of about 2%, according to Deutsche Bank analysts cited by Euronews.

Coverage by Euronews and FashionUnited ties the weakness mainly to China. Dior is led by a woman chief executive, Delphine Arnault.

Fashion and leather goods fell while other divisions grew

LVMH’s group revenue reached €18.5 billion in the three months to the end of September, up 1.2% on a reported basis. Organic growth, which excludes currency and portfolio changes, was 1%, down from 3% in the second quarter and short of expectations, Euronews reported. Reported sales fell 5.9% in the first quarter and rose 0.1% in the second, according to Euronews. For the first nine months, group sales were €57.1 billion, with organic growth of 2%.

Fashion and leather goods was the main drag. Its organic sales fell 5% in the quarter, after the division posted its first organic gain in two years in the previous quarter. For the nine months, the division’s organic sales fell 2% to €26.39 billion, FashionUnited reported. In the quarter, selective retailing, which includes Sephora, rose 8%. Watches and jewellery and wines and spirits each rose 6%, and perfumes and cosmetics rose 1%.

Fashion and leather goods fell 5% in the quarter, while selective retailing, watches and jewellery, wines and spirits, and perfumes and cosmetics all grew. FashionUnited also reported that Louis Vuitton marked the 130th anniversary of its Monogram and expanded its store experiences with LV The Place Seoul, and that Marc Jacobs was sold to WHP Global on September 1, 2026.

Fashion and leather goods, Q3 2026
LVMH’s fashion and leather goods division recorded a 5% organic sales decline in the third quarter of 2026, against an expected decline of about 2%, according to Deutsche Bank analysts cited by Euronews.

Dior’s demand and the role of Delphine Arnault

Delphine Arnault has been chairman and chief executive of Christian Dior Couture since February 1, 2023, according to LVMH’s official profile. She is also a member of the LVMH board and its Executive Committee. The profile also records two years as a consultant at the McKinsey strategy consultancy and, in 2000, a move to designer John Galliano’s company. She joined Dior in 2001, served as deputy managing director from 2008 to 2013, and then became executive vice president at Louis Vuitton, where she oversaw all product-related activities.

FashionUnited reported that Dior noted strong demand for its ready-to-wear and leather goods lines in the quarter. It also reported a new Dior flagship on Via Monte Napoleone in Milan. Parfums Christian Dior benefited from fragrance launches like J’adore Intense and Sauvage Extrait, FashionUnited reported.

The coverage gives no Dior-specific sales figure, so the size of Dior’s strength is not confirmed.

China and the Louis Vuitton dispute

Euronews reported that LVMH said sales growth was good in the United States, Europe and Japan, but it faced a less favourable environment in China, where weaker demand weighed on fashion and leather goods. FashionUnited described strong US demand as offset by weaker demand in China. It reported that the quarter’s 1% organic growth reflected a less buoyant market in China. Neither source gives a separate China sales figure.

Euronews also reported that Louis Vuitton won a lawsuit against the local tea company Molly Tea, which it accused of copying its logo. The case nonetheless drew criticism on social media and calls to boycott the brand in China. The article gives no Louis Vuitton sales figures.

Fashion and leather goods fell 5% in the quarter, while selective retailing, watches and jewellery, wines and spirits, and perfumes and cosmetics all grew.

Market reaction, analyst views and open questions

At about 10 a.m. CEST on October 13, 2026, LVMH shares were down more than 1.6% in Paris, and down nearly 40% since the start of 2026. In September, L’Oréal overtook LVMH as France’s most valuable listed company, Euronews reported.

Deutsche Bank analysts said the results could prompt further cuts to earnings forecasts for the second half of 2026 and for 2027. They described the weakness as cyclical rather than structural, and said it is hard to see what could change investor sentiment in the short term. They also said the recovery is taking longer because of weaker Chinese demand, and that brand initiatives are already producing results, with bottom-up measures expected to be more gradual. Euronews paraphrased LVMH’s own statement as saying its diverse portfolio gave it resilience in an uncertain environment. Neither report gives LVMH’s next reporting date.

Photo: jean-louis zimmermann · CC BY 2.0 · via Wikimedia Commons