LVMH posts modest H1 2026 growth as luxury market splits between hard and soft goods
LVMH reported first‑half 2026 revenue of €38.6 billion, a modest 2 % organic increase, with fashion and leather goods up 1 % to €8.9 billion and watches‑jewelry up 11 % driven by Tiffany and Bulgari. Net profit reached €5.7 billion, about €0.5 billion below analysts’ expectations. The group’s share price has fallen roughly 50 % from its 2023 peak, prompting analysts at Morningstar, Citi and UBS to label the stock undervalued and highlight upside potential, especially as growth in the United States stabilises and demand in China and Europe shows signs of recovery.
Industry peers show a widening divide. Richemont (历峰) posted 11 % revenue growth, buoyed by jewelry and watch segments, while Hermes maintained a 41 % profit margin. In contrast, Kering’s profit plunged 60 % as its fashion brands lag. Analysts attribute the split to a shift toward “hard luxury” – assets perceived as stores of value – versus “soft luxury” such as apparel, which faces weaker demand. Dior’s recent collections drove strong sales in the United States and Japan, underscoring the importance of flagship brands in the recovery.
Entities: Bernard Arnault · Citi · Dior · Gucci · Hermès · Kering (Richemont) · LVMH · LVMH Moët Hennessy Louis Vuitton SE · Louis Vuitton · Morningstar · Richemont · Tiffany & Co.
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Hermès posted H1 2026 revenue of €81.63 billion, up 6.1 % YoY, with an operating profit margin of 41 %. (Hermès)
- [○ 1 SOURCE] LVMH’s watches and jewellery segment grew 11 % organically in H1 2026. (LVMH)
- [○ 1 SOURCE] LVMH’s shares have fallen about 26 % since the start of the year, giving a market value near €230 billion. (LVMH)
- [● 2 SOURCES] Kering (Richemont) reported H1 2026 revenue of €72.20 billion, down 3 % YoY, and net profit of €1.89 billion, a 60 % decline. (Kering)
- [○ 1 SOURCE] Dior’s Q2 sales grew double‑digit percentages in the United States and Japan. (Dior)
- [○ 1 SOURCE] LVMH’s fashion and leather‑goods division saw organic revenue fall 1 % to €181.46 billion in H1 2026. (LVMH)
- [● 3 SOURCES] LVMH reported first‑half 2026 revenue of €386.44 billion, down 3 % year‑on‑year, with organic growth of 2 %. (LVMH)
- [○ 1 SOURCE] Kering’s Gucci brand sales declined 5 % year‑on‑year in H1 2026. (Gucci)