In uncertain times, consumers see gold necklaces, bracelets and the like as better stores of value than trendy handbags
Published Wed, Jan 28, 2026 · 07:23 AM
[PARIS] Sales at LVMH’s key fashion unit fell over the holiday season as the Louis Vuitton owner continued to suffer from sluggish demand.
Organic sales at the fashion and leather goods division fell 3 per cent in the fourth quarter, LVMH Moet Hennessy Louis Vuitton said on Tuesday (Jan 27). Analysts had expected a drop of 2.94 per cent.
LVMH’s American Depositary Receipts slipped 1 per cent in New York following the release. Chief executive officer Bernard Arnault said that the group faced a difficult operating environment and warned 2026 is unlikely to be straightforward, telling investors LVMH would limit spending this year as a result.
Luxury companies have been struggling to bounce back from a slump that followed a post-pandemic boom, with cost-of-living pressures and geopolitical uncertainty weighing on spending. Brands have also suffered from a consumer backlash after steep price increases.
Some companies in the sector have been more resilient, such as Cartier owner Richemont. In uncertain times, consumers see gold necklaces, bracelets and the like as better stores of value than trendy handbags.
Though LVMH has a smaller presence in watches and jewellery, that business performed better than expected in the latest quarter, helping the company eke out a slight gain in overall sales despite weakness in fashion and leather goods. Bulgari performed particularly strongly during the fourth quarter, LVMH said.
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LVMH paid one billion euros (S$1.5 billion) to increase its stake in Loro Piana – the brand known for its cashmere sweaters – to 94 per cent from 85 per cent in the second half of the year, an LVMH representative said.
Organic sales rose 1 per cent in the fourth quarter in both the US and the region that includes China, ahead of analyst estimates. Drops of 2 per cent in Europe and 5 per cent in Japan were bigger than expected.
Full-year profit from recurring operations was 17.8 billion euros, LVMH said, a drop of 9.3 per cent from a year earlier but better than analysts expected.
LVMH’s wines and spirits division saw its third year of falling sales. It’s weighed down in particular by a collapse in demand for Hennessy Cognac.
Arnault, the billionaire founder of LVMH, said that his family’s stake in the luxury conglomerate would surpass 50 per cent in 2026. BLOOMBERG
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