LVMH, Hermès H1 2026 Revenue Soars on US Demand, China Recovery
Major luxury groups LVMH and Hermès posted revenue increases in the first half of 2026, driven by strong demand in the United States and a moderate recovery in China. This follows years of slower sales, though the sector has not regained its previous expansion pace.
Luxury Groups See H1 2026 Revenue Gains
LVMH, a prominent luxury group, reported a 2% increase in first-half 2026 revenue on a comparable basis, with growth accelerating in the second quarter. Hermès delivered a stronger performance, posting sales growth exceeding 6% at constant exchange rates during the same period.
Kering also showed slight growth in the second quarter, marking its first positive quarterly result in two years. This announcement prompted a rise in Kering’s share price. These figures demonstrate a rebound for luxury heavyweights after years of sluggish sales, though the sector has yet to achieve its pre-pandemic expansion levels.
US Demand and Aspirational Customers Drive Recovery
First-half 2026 growth was largely driven by robust demand in the United States, supported by strong financial markets and ongoing wealth creation among affluent consumers. Consulting firm Bain & Company claims the luxury market lost approximately 20 million customers between 2024 and 2025, following a previous loss of 50 million.
Price increases, concerns over product quality, and a slowdown in China contributed to this decline. Luxury groups are now seeing benefits from initiatives designed to retain "aspirational" customers, who are important for sales volumes despite not being ultra-wealthy. Analysts consider this segment’s rebound an encouraging sign for the industry.
China's Moderate Rebound and Creative Leadership Impact
Luxury companies noted renewed interest from Chinese consumers in the first half of 2026, after years of weaker demand in a previously highly profitable market. However, experts remain cautious. Hermès CEO Axel Dumas stated he does not yet observe a fundamental rebound in the region, describing the situation as stable but lacking past momentum.
Christophe Caïs, CEO of luxury consultancy CXG, suggests the sector will not return to the double-digit growth rates of 2021-2023, which he calls a post-Covid anomaly. He states current growth reflects a more sustainable environment.
Changes in creative leadership also contribute, with LVMH attributing accelerated second-quarter growth to the reception of Jonathan Anderson’s first designs for Christian Dior.
Implications for Asia's Premium Beauty Market
The luxury market's H1 2026 recovery, particularly the moderate pickup in China, offers insights for Asia's premium beauty sector. While not a return to rapid expansion, the renewed consumer interest in luxury goods, even if stable, suggests a potential for growth in higher-end beauty segments across Asia.
Asian premium beauty brands may observe strategies for engaging "aspirational" customers, a segment identified as crucial for sales volumes. The reported success of creative revitalization in luxury fashion also shows the importance of product innovation and design for premium brand appeal. Brands should monitor these shifts in consumer spending and creative direction to adapt their market approaches.
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