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LVMH Posts Modest Q2 Gain as U.S. Buyers Drive Early Luxury Upswing

The results point to a fragile recovery that could reverse if tourism losses from the Iran war and currency pressures continue.

Overview

  • LVMH reported on Monday that organic group sales rose about 3% in Q2 to €19.5 billion and that its fashion and leather goods unit returned to growth with a 1% increase.
  • Hard-luxury categories led the quarter with watches and jewellery up roughly 11% and wines and spirits up about 5%, while perfumes and cosmetics slipped around 1%.
  • The company said U.S. sales climbed about 6% and that newly created wealth from the tech and AI boom helped fuel affluent American spending.
  • LVMH warned the Iran war cut roughly one percentage point from growth and disclosed first-half operating profit fell about 4% to €8.7 billion even as operating margin held near 22.5%.
  • Peer Kering posted modest sequential gains with comparable sales up 1–2% and Gucci’s decline narrowing to about 2%, but investors remain cautious as shares are down sharply year-to-date and H2 comparisons grow tougher.