LVMH shares drop 2.56% after second-quarter sales report

LVMH shares swung sharply on Tuesday, rising as much as 2% before reversing course to trade 2.56% lower after the luxury group reported second-quarter sales growth broadly in line with expectations.

The results offered an important test of whether the $400-billion luxury sector is decisively emerging from a two-year downturn.

LVMH is the owner of major luxury brands including Louis Vuitton and Dior, as well as Moet & Chandon champagne.

Sales increased 3% on an adjusted basis for currency movements to €19.5 billion in the second quarter.

LVMH earnings: Second-quarter growth accelerates

LVMH Moet Hennessy Louis Vuitton reported revenue of €38.6 billion for the first half of 2026.

The company said it maintained its innovative momentum during the period.

It also remained solid despite a geopolitical and economic environment that continued to be disrupted.

The group said the situation was amplified by the conflict in the Middle East.

Growth accelerated during the second quarter.

LVMH reported organic revenue growth of 3% for the group.

Growth stood at 4% when excluding the impact of the conflict in the Middle East.

The performance pointed to improving trends across several key markets.

LVMH said this confirmed the improvement in trends that had been observed since the second half of 2025.

Profit remains strong

LVMH reported profit from recurring operations of €8.7 billion for the first half of 2026.

The figure represented an operating margin of 22.5%.

The group said its operating margin remained high during the period.

The Group's share of net profit reached €5.7 billion.

This was stable compared with the same period a year earlier.

The financial performance came as investors continued to assess the condition of the global luxury market.

The second-quarter sales figures were broadly aligned with expectations and provided a key indication of the group's performance during a period of challenging geopolitical and economic conditions.

LVMH's results also showed varying degrees of strength across its major geographic markets.

The United States recorded faster growth, while Asia excluding Japan continued to improve.

Japan delivered growth for the first half, and Europe remained resilient.

Luxury peers also gain

LVMH's market performance was accompanied by gains across several major luxury and beauty companies.

Shares in LVMH peers Kering, Hermes and L'Oreal rose between 2% and 3% in early Tuesday trading.

The positive movement extended to French spirits makers.

Shares in Remy Cointreau rose 2.61%, while Pernod Ricard shares gained 2.16%.

The performance of the world's leading high-quality products group showed continued growth across key markets.

LVMH's first-half revenue reached €38.6 billion, while profit from recurring operations stood at €8.7 billion.

However, the company continued to operate against a backdrop of geopolitical and economic disruption, including the impact of the conflict in the Middle East.

The results will therefore remain an important indicator for investors assessing whether the luxury sector is moving beyond the downturn of the past two years.