LVMH’s fashion and leather goods division returned to positive territory in the second quarter of 2026, posting 1 percent organic growth and signaling that the worst of the luxury slowdown may be behind the world’s largest luxury group. The performance, while modest by historical standards, exceeded analyst expectations and sent a cautious wave of optimism through the sector.
The 1 percent figure belies significant variation beneath the surface. LVMH’s fashion division saw divergent performance across regions: Europe and Japan outperformed, while mainland China remained sluggish as consumer confidence there has yet to fully rebound from the extended luxury downturn.
The turnaround was led by Dior, which has regained momentum after a turbulent period following the departure of Maria Grazia Chiuri and the arrival of Jonathan Anderson as creative director across both womenswear and menswear. Dior’s recent couture show in Rome and the strong reception to Anderson’s debut collections have helped stabilize the brand’s trajectory.
For LVMH, the return to growth in its most profitable division is a critical data point as the group navigates a period of leadership transition. Bernard Arnault’s recent appointment of his sons to key roles, combined with the stabilization of the group’s core fashion engine, suggests a house preparing for its next chapter with renewed confidence in its product engine.
