Jul 27, 2026 earnings call — H1 2026 results and division performance
Group revenue rose 2% organic to EUR 38.6 billion in H1, with operating margin at 22.5%.
Revenue $44.0B (est $44.3B) · EPS $2.62 (est $2.47)
Key quotes
"LVMH delivered a very solid set of results in the first half and a sequential acceleration on organic growth in the second quarter."
Analyst Q&A 11
Fashion & Leather Goods performance
Q (Charles-Louis Scotti): Analyst asked if Dior returned to positive growth and whether production constraints (internalizing production, designer change) limited Dior. He also asked why Asia ex-Japan slowed in Q2 and whether China is the main driver.
A: Management said Vuitton and Dior were both positive in Q2, with Dior a bit above the group average. They acknowledged supply-chain issues during Dior's creative transition and declined to give a theoretical growth figure. For Asia, Asian clientele spending was unchanged quarter-on-quarter, but Asian clients spent less in Asia and more in Europe and Japan.
"Vuitton and Dior are both in positive territories in Q2." — Cecile Cabanis (CFO)
Watches & Jewelry and Wines & Spirits
Q (Anne-Laure Jamain): Analyst asked whether the jewelry acceleration was driven by jewelry versus watches, whether Korea showed strong performance, and whether Wines & Spirits recovery should be expected to continue for the rest of the year.
A: Management said the growth momentum was mainly driven by Tiffany and Bvlgari on jewelry, with both growing mid-teens and strong icon performance; Korea, Americas and Japan all contributed. Watches were slightly negative in Q2 but the combined category including Bvlgari, Tiffany and Vuitton was slightly growing. For Wines & Spirits, they reached 5% with improvement in Champagne & Wines and cognac demand in China offsetting softer U.S. demand, and they expect growth for the remainder of the year though a bit more moderate.
"the growth momentum was mainly driven by both Tiffany and Bvlgari on jewelry." — Cecile Cabanis (CFO)
Customer nationalities and FX effect
Q (Thomas Chauvet): Analyst asked for nationality breakdown of Fashion & Leather Goods growth beyond China, and asked how FX will affect margin in H2 after H1 FX headwinds.
A: Management said Americans provided the bulk of growth (up high single digit), Koreans contributed modestly, Middle Eastern demand was negative, and European, Japanese and Chinese were flattish in Q2. On FX, H1 impact was around 70 bps; they expect a slight positive FX effect on revenues offset by perimeter effects, but on margin they expect approximately the same impact in H2 due to stock duration and timing.
"On FX impact, so H1 was around 70 bps." — Cecile Cabanis (CFO)
China cluster, H2 comps, margins
Q (Antoine Belge · BNP): Analyst asked whether China’s flat cluster is disappointing given easier comps, whether litigation affected sales, how to think about tougher H2 comps and whether H1 margin strength is structural or due to extra effort; also clarified Wines & Spirits margin outlook.
A: Management said Chinese local and tourist demand was flattish overall with offshore improving in Q2; they noted Q2 comps are affected by last year's exceptional Japan growth. On litigation they said the process is ongoing and they will not comment further. They confirmed there was an effort on discipline and cost attention to achieve margin results, and Wines & Spirits full-year margin should be comparable to last year while FX will impact H2.
"There has been, of course, an effort on discipline and particular cost attention in order to come to this result, and we are very happy to have managed it." — Cecile Cabanis (CFO)
Sephora growth and store renovations
Q (Erwan Rambourg): Analyst asked how much Sephora growth is like-for-like versus new openings, whether Tiffany will continue renovating stores now margins are improving, and when Celine and Fendi might recover.
A: Management said Sephora's growth is about half from expansion (including country and service openings) and half from like-for-like, with openings in Belgium, Croatia, Ireland and continued U.S. expansion. Tiffany store transformation increased selling costs and the decrease in silver created a short-term margin headwind, but strong icon performance and growth should gradually improve margin; the renovation program continues at around 10% or more per year. They said Celine and Fendi are improving quarter-to-quarter with encouraging signs.
"On Sephora, when we look at the growth, it's probably half-half in terms of expansion." — Cecile Cabanis (CFO)
F&LG operating leverage and Perfume & Cosmetics
Q (Edouard Aubin): Analyst asked whether Fashion & Leather Goods would show operating leverage if growth reaches low- to mid-single digits, and why Perfumes & Cosmetics has been relatively sluggish.
A: Management said for the group they start to get operating leverage once growth reaches 3% to 4%, and H1 operating performance also required extra discipline and cost efforts. On Perfume & Cosmetics, they said the division is being selective on distribution and promotions to protect brand equity, which limits short-term growth and is also affected by travel retail softness.
"So on the margin, hypothetically on your assumption, maybe I'll come back to what I -- the message that I repeat often, which is for the group, probably once we reach 3% to 4% growth, we are starting to get operating leverage." — Cecile Cabanis (CFO)
U.S. momentum, China events, AI use
Q (Oliver Chen): Analyst asked whether U.S. momentum came from tourism or local demand, what China purchase clustering implies for store strategy, how they balance marketing spend and margin, and their approach to AI and personalization.
A: Management said U.S. momentum was both local demand and an acceleration in tourism in Q2. On China they warned to avoid over-interpreting short-term clustering and said they already focus on store experience and brand activation during shopping moments. They balance cost and brand investment, seek efficiencies (notably via AI) to improve sales growth, time to market and inventory, and are deploying AI across clienteling, supply chain and corporate functions.
"On AI, there are several initiatives on AI because you can really leverage it in many areas." — Cecile Cabanis (CFO)
Why Vuitton/Dior growth low
Q (Luca Solca · Bernstein): Analyst asked for the diagnosis of why core brands like Vuitton and Dior had unusually low or negative organic growth for several quarters and whether they are losing or gaining market share or missing middle-class demand.
A: Management said Dior and Vuitton have different situations: Dior began creative renewal recently and all key clienteles are up in H1 with Americans and Japan accelerating, and collections and bags are performing well. For Vuitton they highlighted the Monogram 130 years initiative driving momentum across bags, ready-to-wear, jewelry and perfume, and they said they pursue a dual strategy addressing both very exclusive clients (P9) and more aspirational customers with new bag forms.
"On Dior, all key clienteles are up in H1, double-digit for Americans, and Japan and Japanese in Q2, that all accelerated." — Cecile Cabanis (CFO)
China comps, MENA trends, cost phasing
Q (Victoria Petrova): Analyst asked whether Q3 China comps will be inflated, how MENA trended into June and Q3, and whether there is any phasing of costs and store refurbishments (esp. Japan Watches & Jewelry).
A: Management said Q3 has a more difficult basis of comp but it mirrors easier comps in 2024 so is broadly comparable. They said MENA showed regular gradual improvement: March had a large drop, Q1 saw a 1 point impact, Q2 also had 1 point over longer duration, and they are exiting the quarter still negative but much more muted. They reiterated active cost discipline across marketing, selling and G&A, and noted Tiffany improved margin despite headwinds like gold price and renovation costs.
"Also, we are exiting the quarter still negative but much more muted than when we entered the quarter." — Cecile Cabanis (CFO)
Cognac recovery and Watches geography
Q (Jean Danjou): Analyst asked if China cognac improvement is structural or short-term, and whether the Watches & Jewelry outperformance is concentrated in certain geographies.
A: Management said the cognac improvement reflects sell-in and sell-out alignment, healthier stocks and is not driven by stocking. They said Watches & Jewelry acceleration was strongest in the U.S., Japan and Korea.
"We are sell in and sell out that are quite line, and the stocks are much healthier than they used to be." — Cecile Cabanis (CFO)
F&LG price/volume and U.S. duties
Q (Chiara Battistini): Analyst asked about price, mix and volume dynamics for Fashion & Leather Goods in Q2 and whether they received any refund of U.S. duties and if more is expected.
A: Management said Q2 reported 1% growth for F&LG, and excluding Middle East impact it's 2% growth; price increases were moderate and overall volume/mix was flat. They said they received some U.S. duties refund but it is only a few basis points of margin, much less than the currency impact.
"So price, vol mix for F&LG, if you look at Q2, it's 1% growth." — Cecile Cabanis (CFO)