LVMH Q3 Organic Growth Slows to 1%, China Market Affects Beauty

LVMH's Q3 Performance Amidst China Slowdown

LVMH Moët Hennessy Louis Vuitton reported total revenue of €57.1 billion for the first nine months of 2026. While organic revenue growth for this period reached +2% year-on-year, the third quarter saw a deceleration, with organic growth at +1%. This slower performance in the third quarter was attributed by the luxury group to a less active market environment in China.

In contrast, the United States, Europe, and Japan demonstrated positive growth during the same period. Despite these shifts, LVMH characterized its overall financial results as "very solid" given the current uncertain geopolitical and economic climate.

Perfumes & Cosmetics Division Stalls

The Perfumes & Cosmetics business group recorded flat organic growth for the first nine months of 2026, with its reported revenue dipping by -2% year-on-year. Parfums Christian Dior saw positive contributions from recent product introductions, including J’adore Intense, Sauvage Extrait, and new eau de parfum versions of Dior Addict.

The Maison also unveiled new signature scents within La Collection Privée and benefited from strong makeup sales, particularly from its Forever and Backstage lines. Guerlain achieved substantial expansion, driven by its L’Heure Bleue fragrance launch, L’Art & La Matière, and Aqua Allegoria collections, alongside increased sales of Rouge G lipstick.

Parfums Givenchy focused on developing L’Interdit, Maison Francis Kurkdjian expanded its Oud collection, and Acqua di Parma celebrated its 110th anniversary.

Selective Retailing Shows Strength, Fashion & Leather Goods Hit

LVMH's Selective Retailing division posted +6% organic growth over the nine-month period, even as reported revenue declined by -1%. This positive organic performance was primarily fueled by the strong results of Sephora. The group also confirmed the divestment of most of DFS Group’s operations.

In the Fashion & Leather Goods sector, revenues decreased by -4% on a reported basis (-2% organically), benefiting from the buoyant US market but experiencing a downturn in China demand during the third quarter. The Watches & Jewelry business group recorded +8% organic growth, propelled by strong jewelry sales.

Asia's Beauty Economy Faces China's Demand Shift

The reported slowdown in China's luxury market, which impacted LVMH’s Q3 organic growth to +1% and resulted in flat growth for its Perfumes & Cosmetics division, reveals a significant shift in consumer demand within Asia.

Beauty brands and retailers operating in China, or those heavily reliant on Chinese consumers in travel retail, should adjust their sales forecasts and marketing strategies for the upcoming holiday season.

The sustained performance of Sephora suggests certain retail formats or product categories may show more resilience, but the broader luxury beauty sector will need to monitor China's economic environment closely through the end of 2026 to anticipate further market changes.