LVMH has reported a lacklustre start to its first quarter of 2026 trading, dragged down by a slump in demand for perfumes and cosmetics and offset by a bumper performance from Sephora.
The French luxury group’s revenues decreased 6% to €19.1bn – a 1% increase on an organic basis – compared with €20.3bn in Q1 2025.
LVMH’s Perfume & Cosmetics division – comprising brands such as Louis Vuitton, Christian Dior, Givenchy and Benefit Cosmetics – saw a particularly challenging quarter, with sales sinking 6% on a reported basis.
Despite the decline, LVMH claimed its flagship brands had a good start to the year, with Parfums Christian Dior in particular being buoyed by the launches of J’adore Intense and eau de parfum versions of Dior Addict.
French skin care, perfume, and cosmetics brand Guerlain also reported growth driven by its L’Art & La Matière and Aqua Allegoria fragrance collections, as well as its Rouge G lipstick.
However, it was LVMH’s Selective Retailing division which helped to offset overall declines, achieving organic revenue growth of 4% – down 3% on a reported basis.
This was thanks to a solid performance from beauty retailer Sephora, which saw revenue growth and gained market share across all its operating regions.
LVMH highlighted Sephora’s success in the UK, amid its continued expansion plans, following the retailer’s return to the country in 2023.
Sephora now operates 11 stores across Britain, Wales and Ireland, with plans to open two stores in Scotland this summer, as well as two new smaller boutiques in London.
LVMH also agreed to sell part of its luxury travel retail business, DFS, during the quarter.
The deal saw CTG Duty-Free acquire DFS stores in Hong Kong and Macau, as well as intangible assets in Greater China.
The latter includes a series of DFS brands and intellectual properties for exclusive use in the region.
Amid a geopolitical and economic environment, particularly disrupted by the conflict in the Middle East, LVMH stated that it remains “vigilant yet confident at the start of the year”.
LVMH said in a statement: “The group remains focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its designs, their desirability and their selective distribution.
“LVMH will rely on the talent and motivation of its teams, the diversity of its businesses and the good geographic balance of its revenue to further strengthen its global leadership position in high-quality products in 2026.”
Véronique Courtois was recently named Chairman and CEO of Parfums Christian Dior and of LVMH's Beauty Division.
Courtois joined the luxury giant’s Executive Committee in February 2026, and will oversee the activities of all maisons in its Beauty Division.
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