This article first appeared on GuruFocus.

Group Revenue: EUR38.6 billion, up 2% organic in H1 2026.

Operating Margin: 22.5%.

Profit from Recurring Operations: EUR8.7 billion.

Net Income: In line with last year at EUR5.7 billion.

Free Cash Flow: Over EUR4 billion.

Wines & Spirits Revenue: EUR2.6 billion, up 5% organic.

Fashion & Leather Goods Revenue: EUR18.1 billion, down 1% organic.

Perfumes & Cosmetics Revenue: EUR3.9 billion, flat organic.

Watches & Jewelry Revenue: EUR5.2 billion, up 9% organic.

Selective Retailing Revenue: EUR8.4 billion, up 5% organic.

Geographic Revenue Mix: Europe 25%, U.S. 25%, Japan 8%, Asia 29%, Other Markets 13%.

Interim Dividend: EUR5.50 per share.

Release Date: July 27, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Lvmh Moet Hennessy Louis Vuitton SE (LVMHF) reported a solid set of results with a 2% organic revenue growth in the first half of 2026, reaching EUR38.6 billion.

Operating margin reached a high level of 22.5%, demonstrating strong financial discipline.

Watches & Jewelry division experienced double-digit growth in Q2, driven by strong performances from Tiffany and Bvlgari.

The Wines & Spirits division saw a 5% organic growth, supported by volume growth and improving demand, particularly in Europe and Japan.

Sephora showed good performance across key markets, including the U.S., Europe, Middle East, and China, with positive growth in all categories.

Negative Points

The Middle East conflict negatively impacted the top-line growth by 1 percentage point in both Q1 and Q2.

Fashion & Leather Goods division saw a 1% organic decline in revenue for the first half, with a 5% decline on a reported basis due to currency impacts.

Perfumes & Cosmetics division reported flat organic revenue growth and a 4% decline on a reported basis, affected by travel retail headwinds.

Currency impacts had a significant negative effect on financials, with a EUR700 million hit to operating income.

The U.S. demand for cognac remained soft, with negative depletions, although offset by improving demand in other regions.

Q & A Highlights

Q: Can you provide more details on the performance of Fashion & Leather Goods, particularly Dior, and any production constraints affecting growth? A: Cecile Cabanis, CFO, stated that both Louis Vuitton and Dior were in positive territories in Q2, with Dior slightly outperforming. Dior faced some supply chain issues due to creative renewal and production transitions, but the trend is positive and accelerating.

Story continues

Q: What drove the strong performance in the Watches & Jewelry segment, and how did it perform in South Korea? A: Cecile Cabanis noted that growth was mainly driven by Tiffany and Bvlgari, with strong performance in the Americas, Japan, and Korea. Tiffany’s transformation and iconic lines like HardWear contributed significantly to growth.

Q: Can you elaborate on the impact of FX on margins and expectations for the second half of the year? A: Cecile Cabanis explained that the FX impact was significant in H1, with a negative effect on EBIT. While there might be a slight positive impact on revenue from FX in H2, the margin impact is expected to remain similar due to the time lag in Wines & Spirits.

Q: How is the U.S. market performing, and what are the trends in tourism versus local demand? A: Cecile Cabanis reported strong momentum in the U.S. market, with both local demand and tourism accelerating in Q2. The trend reversed from Q1, where tourism was impacted by exchange rates.

Q: What are the prospects for Celine and Fendi, and what improvements are expected? A: Cecile Cabanis mentioned that both brands are showing progress quarter-to-quarter. Celine has seen success with new bag formats and ready-to-wear, while Fendi is improving following recent shows.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.