LVMH Q2 sales up 3% US demand offsets Iran war, shares down

Shares of LVMH fell in premarket trading on Tuesday, July 28, 2026, after the French luxury conglomerate reported second-quarter sales that failed to fully convince investors of a robust recovery. The company's results, released on Monday, July 27, showed a modest return to growth in its crucial fashion and leather goods division, but the performance fell short of expectations and highlighted a persistent regional divide in consumer spending.

For the quarter, LVMH reported overall organic sales growth of 3%, reaching 19.5 billion euros. This figure was broadly in line with analyst estimates. Growth was primarily driven by a 6% sales increase in the United States, accelerating from 3% in the first quarter. The company attributed the strong U.S. demand to newly created wealth, particularly from the artificial intelligence and technology sectors.

The performance of the company's divisions was mixed. The Watches & Jewellery unit was the standout, with organic sales surging 11%. In contrast, the fashion and leather goods division, which generates the majority of LVMH's operating profit, posted organic growth of just 1%. While this marked the division's first quarterly increase in two...