LVMH reported its Q3 2026 financial results on October 13, revealing a 15% drop in demand from Chinese consumers. The decline dragged organic revenue in its core Fashion & Leather Goods division down 5%, while management acknowledged an ongoing trademark dispute with Chinese milk tea brand Molly Tea weighed on early Q3 performance.

For the first nine months of 2026, LVMH generated €57.15 billion in revenue (+2% organic growth), though Q3 growth slowed to 1%. Growth was sustained by the U.S. (+5%), Japan (+6%), and Europe (+4%), whereas Asia (excl. Japan) contracted 5%.

The decline in Chinese demand (-15%) reflected mid-single-digit drops in overseas tourist spending and double-digit declines domestically. This weakness hit the Fashion & Leather Goods division hardest, where Q3 organic revenue fell 5% (vs. analyst expectations of -1.6%), further compounded by supply chain disruptions at Louis Vuitton. Conversely, Wines & Spirits rose 6% in Q3, backed by steady Hennessy Cognac sales in China.

Growth shifted toward non-Asian markets and alternative segments. Watches & Jewelry led nine-month performance with 8% organic growth, driven by Tiffany & Co. and Bulgari, while Selective Retailing rose 6% on Sephora’s global gains.

CFO Cécile Cabanis stated that despite early Q3 drag from the trademark dispute, LVMH will not reduce investments in China. Management rejected short-term price cuts to protect long-term brand equity. While Chinese consumer engagement showed slight improvement heading into Q4, LVMH remains cautious on full demand recovery.