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LVMH’s fashion and leather division reports 1% organic growth in second quarter

The French luxury brand has also seen persisting positive momentum in China for Hennessy cognac since the 2026 Chinese New Year

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Luxury brand LVMH has reported a 1 per cent organic increase in the second quarter of 2026 in its fashion and leather division. Photo: Reuters
Xiaofei Xuin Paris
Louis Vuitton Moët Hennessy (LVMH) reported a 1 per cent organic growth in the second quarter at its core fashion and leather goods division on Monday, ending seven straight quarters of decline, opening a busy week of French luxury results on a positive note.

Over the first half, organic sales at the fashion and leather goods division fell 1 per cent, an improvement on the 3 per cent decline in the second half of 2025 and the 7 per cent drop in the first, with the group noting a “rapid acceleration” in the United States.

Group-wide organic revenue rose 2 per cent during the first half of 2026, accelerating from the 1 per cent organic growth reported in the second half of last year. Growth accelerated to 3 per cent in the second quarter, even though the war in the Middle East cost the group a percentage point of organic growth, according to LVMH.

The Wine and Spirit division saw 5 per cent organic growth during the first half of the year, a visible improvement from the 4 per cent decline in the second half of 2025. Notably, the group saw persisting positive momentum for Hennessy cognac in China since the Chinese New Year, according to LVMH.

The group’s cognac sales had previously plunged in China since Beijing imposed provisional anti-dumping duties on European brandy as retaliation to Brussels’ tariffs on made-in-China electric vehicles.

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China and France eventually negotiated a solution where Beijing exempted roughly 90 per cent of French cognac export volume to China from the levy – including major producers Hennessy, Martell and Rémy Martin – in exchange for them to sign on to a minimum export price.
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