LVMH posted its first quarterly increase in fashion and leather goods sales in two years on Monday, signaling that the prolonged luxury downturn may finally be easing. The group’s most profitable division generated €8.89 billion in the second quarter of 2026, a 1 percent organic rise that snapped seven consecutive quarters of decline.
The result exceeded analyst expectations, though just barely. The broader LVMH group reported first-half revenue of €38.6 billion, up 2 percent organically, with profit from recurring operations reaching €8.7 billion.
The performance offers a cautious signal for the wider industry. Kering and Hermès are due to report later this week, and investors will be watching for similar green shoots. LVMH’s recovery in its core fashion division suggests the aspirational consumer, long absent from the market, may be creeping back.
Growth was uneven across regions. The United States showed renewed appetite for luxury goods, helping offset ongoing weakness in China, where consumer sentiment remains fragile amid geopolitical tensions and a sluggish property market. Europe held steady, supported by tourism spending in France and Italy.
Still, the 1 percent gain is modest by historical standards. The group’s selective retail division and wines and spirits segment both contracted during the quarter, and currency headwinds trimmed reported growth. As one analyst put it, the patient is breathing again, but far from running.
