LVMH Moët Hennessy Louis Vuitton’s fashion and leather goods division has fallen back into negative territory in the third quarter of 2026, reversing recent gains.
The division, which houses brands including Louis Vuitton, Dior, and Loro Piana, posted an organic sales decline of 5% in the three months to September 30.
That result came in well below analyst consensus forecasts, which had predicted a more modest organic decline of around 1.6% for the period.
Revenue in the division fell to €8.25 billion in the quarter, down from €8.5 billion recorded in the same three-month period a year earlier.
At the group level, total revenue rose 1% organically to €18.5 billion, still falling short of broader analyst expectations.
A consumer backlash in China stemming from Louis Vuitton’s trademark dispute with local tea chain Molly weighed heavily on the brand’s performance in the region.
Chief Financial Officer Cécile Cabanis acknowledged the dispute “had a negative impact, at least at the beginning of the quarter,” while noting it was difficult to quantify the precise effect.
Cabanis also told analysts on a webcast that demand from Chinese customers fell in the midteens overall during the quarter.
Louis Vuitton’s result trailed the broader division, with Cabanis citing an isolated supply-chain problem at one of its freight partners that shaved over a percentage point from the brand’s quarterly growth.
Sales in Asia, excluding Japan, fell 5% in the third quarter, reversing a 4% increase recorded in the previous three months.
Japan saw organic sales growth slow to 6% from 14% in the second quarter, while the United States maintained momentum with organic revenues rising 5%.
Europe provided a brighter spot, with revenues increasing 4% in the third quarter, representing an acceleration compared to the prior period.
Selective Retailing delivered the group’s strongest performance, growing 8% organically against a prior-year quarter that had itself already grown 7%.
Analysts revised down their expectations ahead of the results, pointing to a Chinese tax crackdown on wealthy individuals and the fallout from the Molly trademark dispute as key negative factors.
RBC Capital Markets offered a cautious assessment following the release, stating “overall, these results confirm a stalling in already fragile recovery momentum from earlier in the year.”
The bank added that it would “expect modest pressure on LVMH and luxury peer group stocks on the back of this print.”
New creative directions at Dior, Celine, Fendi, Givenchy, and Loewe are feeding through into collections and stores, with management pointing to encouraging responses to several products.
Jewelry, Sephora, and the wines and spirits division continue to provide support to overall group growth as the fashion recovery remains uneven.