Luxury giant LVMH reported a rise in quarterly sales on Monday as strong demand in the United States helped offset weaker spending in Europe and the Gulf due to the Iran war.

Second-quarter sales at the owner of Louis Vuitton, Dior and Bulgari rose 3 per cent when adjusted for currency swings to 19.5 billion euros (USD 22.2 billion), broadly ‌in line ⁠with analysts’ consensus ⁠estimate, according to Visible Alpha.

Growth was driven by the U.S., where sales rose 6 per cent ​in the second quarter after increasing 3 per cent in the first three months of the year, ​LVMH said.

European luxury brands have stepped up their focus on the United States, opening stores and staging fashion events to attract wealthy shoppers buoyed by ​the AI and technology boom, while demand remains subdued ⁠in other ‌regions.

However, the update from LVMH – the first major luxury ​group to report ​first-half results – may not be enough to reassure investors that ⁠the USD 400 billion luxury sector is finally emerging from a ​two-year downturn.

The fashion and leather goods division, which generates ​the bulk of LVMH’s operating profit, posted 1 per cent organic growth. That was its first quarterly increase in two years, but fell short of analysts’ expectations for a 1.7 per cent rise.

LVMH said the Iran war reduced growth in the division by 1 percentage point, but added that Dior was gaining momentum ‌under new creative director Jonathan Anderson.

In Europe, sales were flat in the quarter, stabilising after a decline in the first three ​months of the ​year as conflict ⁠in the Middle East weighed on tourism.

For the first half, sales rose 2 per cent on an organic basis, but fell 3 per cent on a reported basis to 38.6 billion euros. ​Over the same period, profits from current operations fell 4 per cent to 8.7 billion euros, though the operating margin was broadly stable at 22.5 per cent.

Shares in the French group, controlled by billionaire Bernard Arnault, have fallen 28 per cent since the start of the year, making LVMH one of Europe’s worst-performing large-cap stocks.

Published On Jul 28, 2026 at 12:41 PM IST

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