LVMH Moët Hennessy - Louis Vuitton, Société Européenne, is a worldwide luxury goods company operating through its subsidiaries. Its portfolio spans wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing, with brands such as Moët & Chandon, Louis Vuitton, Christian Dior, Sephora, and Tiffany & Co. It also operates in media, yachts, and hotels. Founded in 1365, the company is headquartered in Paris, France.
L'Oréal Overtakes LVMH as France's Most Valuable Listed Company
In the ranking of French listed companies by market capitalisation, cosmetics giant L'Oréal overtook luxury brand giant Moët Hennessy Louis Vuitton, or LVMH, on the 15th to take the top spot. It is the first time since 2017 that a non-luxury company has held the top market capitalisation spot on the Paris market at the close of trading. According to LSEG data, L'Oréal's market capitalisation stood at about 203 billion euros, or 234 billion dollars, late on the 15th, while LVMH's was 201 billion euros. Nick Anderson, an analyst at London research firm Berenberg, pointed to the so-called lipstick effect as the backdrop: when the economic mood sours, relatively affordable luxury goods sell more easily than expensive bags, shoes and dresses. The luxury goods industry has been shrinking over the past three years amid China's prolonged economic slump and the worsening situation in the Middle East, and an analysis by consulting firm Bain found that repeated price increases drove about 60 million consumers away from the luxury market. L'Oréal shares have risen about 5 percent so far this year, while LVMH shares have fallen about 35 percent.
LVMH-Moët Hennessy Louis Vuitton shares fell to a six-year low, closing around $501.09 on September 4 after dipping to about $494 the previous day, as investors doubt a luxury spending recovery. The stock has dropped roughly 33% from about $750 in early 2026, reflecting a clear downtrend. The broader STOXX Europe Luxury 10 index is down about 19% year to date, and Bank of America analysts see industry demand slowing by about 3 percentage points in the third quarter versus the second. Bernstein analysts, led by Luca Solca, cut their third-quarter industry organic growth forecast to 4.9% from 6.3% and lowered their full-year 2026 forecast to 5.1%, citing a sharp slowdown in Chinese luxury mall sales, including a 12% decline in July. Geopolitical tensions, particularly the U.S.-Iran conflict, add to concerns about Middle East demand, while technical indicators like RSI at 37.25 and MACD at -48.32 signal continued selling pressure.
China's tentative luxury spending recovery appears to be losing momentum, with early third-quarter data showing a sharp slowdown that raises the risk of another false dawn for the sector, according to Bernstein analysts. Luxury shopping mall sales in mainland China weakened sharply in June and July, culminating in a 12% year-over-year decline in July, following broadly flat growth in the first quarter and low-single-digit growth in the second. The slowdown interrupts a gradual revival over the previous four quarters, as consumer confidence remains depressed and middle-class shoppers are weighed down by weaker economic growth and substantial price increases implemented by luxury brands. New tax measures, including greater scrutiny of offshore wealth and tougher enforcement, are curbing spending among high-net-worth individuals, who had remained resilient. In response, Bernstein cut its third-quarter industry organic growth forecast by 110 basis points to 4.9%, down from 6.3% in the second quarter, and trimmed the full-year 2026 estimate by 40 basis points to 5.1%. Performance is diverging sharply among brands, with Zegna, Gucci, and Richemont's Jewellery Maisons showing relative strength, while LVMH has been weaker. Richemont remains the preferred luxury name, while Gucci's 20% to 30% price cuts could support Kering's near-term performance but risk weakening brand equity over time.
G-III Acquires Marc Jacobs, Eyes $1 Billion in Sales
G-III Apparel Group has completed its acquisition of Marc Jacobs from LVMH Moët Hennessy Louis Vuitton in deals totaling roughly $925 million, with plans to grow the brand to $1 billion in sales. CEO Morris Goldfarb, who previously navigated the loss of Tommy Hilfiger and Calvin Klein licenses by relaunching Donna Karan, will apply lessons learned from that experience. Marc Jacobs will remain as creative director, and the company plans to relaunch the Marc by Marc Jacobs line for department stores. In the second quarter, G-III's net income rose to $20.2 million from $10.9 million a year ago, and the company raised its full-year earnings guidance to $2.20-$2.30 per share.
Europe's Luxury Giants See Green Shoots in China Market
Europe's biggest luxury firms are turning more positive on the crucial Chinese market as a fragile spending recovery takes shape. Chinese household consumption is stabilizing and even rebounding in some categories like high-end cosmetics, according to Bloomberg Intelligence analysts. Earnings estimates point to a pickup in performance, with Gucci-owner Kering expected to return to sales growth in the region including China by the fourth quarter, while Burberry reported a 9% jump in retail sales in Greater China in the most recent quarter. LVMH said China appears to be stabilizing after several quarters of deterioration, and smaller players like Moncler are also well positioned. The spending boost is primarily driven by high-net-worth consumers, with the key debate centering on whether improving sentiment can broaden beyond affluent shoppers.
Luxury Sales Plunge in China as Tax Push Hits Wealthy Shoppers
Global luxury brands are facing a deepening sales slump in China as the country's campaign to tax offshore wealth dampens spending by its richest consumers. Sales at the 25 biggest luxury labels in China dropped more than 10% in July, according to three research firms surveyed by Bloomberg, worse than June's slowdown and a sharp reversal from earlier this year. LVMH's Louis Vuitton and Dior, Kering's Gucci, Bottega Veneta and Balenciaga all recorded double-digit sales drops, while Hermes swung from gains to declines and growth for Chanel and Prada decelerated significantly. The slump coincides with China's sweeping efforts to stem capital outflows and reclaim tax revenues, including tighter controls on cross-border stock trading and demands for citizens to pay billions of dollars in levies on offshore assets and investment gains. The clampdown has contributed to erasing last year's 28.3% rally in the MSCI China Index, which is down 8.9% this year, and Hong Kong's Hang Seng Index has also lost steam after strong gains in 2025.
Luxury brands and automakers signal consumer weakness from China
European luxury brands and automakers are signaling diverging fortunes amid consumer weakness in China. BMW, Audi, Volkswagen, and Porsche are struggling as Chinese consumers opt for cheaper, better domestic alternatives, while heritage luxury names like LVMH and Kering are holding up better. Ferrari and Rolls-Royce have seen China sales fall but not as sharply as mass-premium auto brands. Hermez said price hikes in 2027 are going to be smaller than this year, which weighed on its shares, while Kering's 1% second-quarter revenue rise was enough to boost its stock.
LVMH has sold its stake in the US whiskey brand SirDavis to Beyoncé Knowles-Carter, giving the singer full ownership. SirDavis was established in 2024 as a joint venture between LVMH's Moët Hennessy unit and Knowles-Carter. The sale makes the business a woman, family and Black-owned company, according to a statement from SirDavis. The brand, a blend of 51% rye and 49% malted barley finished in sherry casks, retails for $89.99 per 750ml bottle in the US and is available in select international airport stores. Just Drinks has contacted Moët Hennessy and SirDavis for further comment.
LVMH first-half 2026 revenue falls 3% to €38.64 billion but organic growth returns
LVMH reported first-half 2026 revenue of €38.64 billion, down 3% on a reported basis, while organic revenue rose 2% year-on-year. Growth accelerated to 3% organically in the second quarter, or 4% excluding the impact of the Middle East conflict. Profit from recurring operations stood at €8.69 billion, down 4%, and the group share of net profit held steady at €5.69 billion. Among divisions, watches and jewellery outperformed with 9% organic growth, while fashion and leather goods returned to 1% organic growth in the second quarter after a first-quarter decline. LVMH also agreed to sell Marc Jacobs to WHP Global and remains confident in its 2026 outlook.
LVMH first-half profit nearly flat as revenue slips 3 percent
LVMH Moët Hennessy Louis Vuitton reported first-half net profit, Group share, of €5.697 billion, nearly unchanged from €5.698 billion a year earlier. Operating profit declined 3 percent to €8.714 billion, while profit from recurring operations fell 4 percent to €8.691 billion. Revenue for the half dropped 3 percent to €38.644 billion, though organic revenue grew 2 percent. Second-quarter revenue reached €19.524 billion, up from €19.499 billion a year ago, with organic growth of 3 percent.
LVMH Chairman Bernard Arnault Denies Family Succession Battle Reports
LVMH Chairman Bernard Arnault has denied media reports of a succession battle among his five children, calling the claims fictional. In a post on X, he dismissed suggestions of family divisions, stating his children run LVMH brands, make decisions, and speak regularly. The French daily Le Monde had reported on potential rivalries and Arnault's broader influence. Arnault, 77, has led the €230 billion luxury group for nearly four decades without naming a successor, though LVMH last year raised the age limit for its chairman and CEO role to 85.
Jewelry business becomes luxury brand star as fashion sales remain sluggish
The jewelry business is emerging as a key growth driver for the luxury goods industry, as fashion sales continue to slow and Middle East conflicts weigh on consumer purchasing power. Analysts at Vontobel note that jewelry consistently delivers growth and boasts standout margins relative to its business size. Carole Madjo, head of European luxury goods research at Barclays, says consumers are growing tired of high-end fashion that lacks novelty, while the sustained rise in gold prices is drawing more attention to jewelry as an investment asset. This trend is reflected in the results of Richemont, owner of Cartier and Van Cleef & Arpels, whose jewelry sales surged 24 percent in the quarter ending June, far exceeding analyst expectations. Meanwhile, LVMH, owner of Bulgari and Tiffany, is also expected to post stronger performance in its watches and jewelry division. Barclays has raised its growth forecast for LVMH's watches and jewelry business in 2026 to 8 percent from 7 percent, well above the 3 percent growth rate in 2025. This division is LVMH's third-largest business unit, accounting for 13 percent of its total revenue of 81 billion euros in 2025. Kering, owner of Pomellato and Boucheron, disclosed in April that its jewelry sales rose 22 percent in the first quarter year-on-year, the highest growth rate among all its businesses. Madjo adds that even brands with strong fashion and leather goods heritage, such as Hermès, Prada, and Gucci, are placing greater emphasis on jewelry, as it is a category delivering standout growth at this time. The market is watching earnings announcements from major luxury goods makers this week, with LVMH reporting on Monday, July 27, followed by Kering on Tuesday, July 28, and Hermès on Wednesday, July 29.
Prada tops BofA luxury brand ranking in first half of 2026
Prada, Michael Kors, and Alaïa recorded the strongest combined digital brand rankings among soft-luxury names in the second quarter, according to Bank of America's latest Brand Leading Indicator. The indicator ranks 43 soft-luxury brands based on social media followers, online searches, and website traffic, with momentum weighted at 60% and digital presence at 40%. Prada ranked first overall, followed by Michael Kors and Alaïa, while Michael Kors led three-month momentum after Google searches surged from a low base, lifting it from 33rd place in the first quarter. Prada and Alaïa were identified as the strongest brands in the first half of 2026, maintaining consistently high positions across both quarters. Chanel showed the biggest improvement late in the period, climbing from 10th in April to first in June as interest grew around Matthieu Blazy's collection, with Alaïa and Coach ranking second and third for June. Gucci's quarterly momentum ranking improved by 20 places to sixth, supported by stronger US website traffic, online searches, and promotional events, while Saint Laurent rose five positions to 16th, though fellow Kering brand Balenciaga dropped from 13th to 35th. Among LVMH brands, Loro Piana returned to the top 10 at seventh, Louis Vuitton climbed to 10th from 28th, and Dior finished 31st after Chinese search activity weakened. Swatch led hard luxury, helped by online interest surrounding its Royal Pop pocket watch collaboration with Audemars Piguet, with Jaeger-LeCoultre and Tissot placing second and third. Digital engagement across the soft-luxury sector increased 18% year over year, marking a fifth consecutive quarter of acceleration, as Google searches rose 47%, website traffic grew 39%, and Chinese Baidu activity remained down 18%. Excluding unusually strong Google search figures, overall online activity still improved by 7 percentage points from the first quarter, supporting expectations for continued luxury demand recovery led by the US and South Korea.
LVMH disclosed that as of June 30, 2026, its liquidity account with ODDO BHF SCA held 39,000 shares and 17,545,027 euros in cash. During the first half of 2026, the contract executed 3,940 purchases totaling 271,147 shares for 141,747,401 euros and 3,960 sales totaling 253,147 shares for 131,799,631 euros. At the contract's signing, the account held 40,000 shares and 32,476,236 euros in cash.
Giorgio Armani Group Readies for Anticipated Stake Sale
The Giorgio Armani Group is expected to begin a stake sale process in September, in accordance with the late designer's will. Rothschild & Co. is expected to be the adviser, given partner Irving Bellotti's longtime relationship with Giorgio Armani and his board seat at the Giorgio Armani Foundation. The will allows an initial 15 percent stake to be sold within 18 months of its opening to LVMH, EssilorLuxottica, or L'Oréal, with a further 30 to 54.9 percent possible between the third and fifth years. A market source said the heirs may consider offering a 5 percent stake to each of the three groups to ensure transparency and allow them to evaluate the company before a larger offer. The foundation would retain a 30.1 percent stake to maintain control.
LVMH Faces Amended Stella McCartney Lawsuit Over Pay and Retaliation
An amended lawsuit filed in the Southern District of New York alleges pay discrimination and retaliation at Stella McCartney America Inc., a subsidiary of LVMH Moët Hennessy Louis Vuitton Société Européenne. The complaint also names LVMH and senior leaders, claiming retaliation following medical leave and pressure to engage in anti-competitive practices. The filing raises questions about corporate governance, oversight, and compliance across LVMH's portfolio of luxury brands. LVMH, listed as ENXTPA:MC, sits at the center of the global luxury market through its maisons in fashion, leather goods, wines and spirits, perfumes, cosmetics, and watches and jewelry. The outcome and the company's response could affect perceptions of corporate culture, governance quality, and risk management at ENXTPA:MC.
European Markets Close Weak Amid US-Iran Peace Talks Uncertainty
European stocks closed weak on Friday as investors turned cautious over uncertainty about U.S. and Iran securing a lasting peace truce following the abrupt cancellation of talks in Switzerland. The pan European Stoxx 600 fell 0.24%, the UK's FTSE 100 ended down 0.35%, Germany's DAX drifted down 0.16%, and France's CAC 40 lost 0.55%. Mining stocks tumbled in London, with Antofagasta falling 6.1% and BHP Group down 4.3% after announcing a roughly $2.3 billion impairment charge on its Jansen potash project. In Frankfurt, Volkswagen ended 4.3% lower, while in Paris, Hermes International and LVMH lost between 1% and 2.3%. On the economic front, Germany's producer prices rose at the fastest pace in three years in May, and UK retail sales grew by a stronger-than-expected 1.2% month-on-month.
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