The two largest French luxury groups reported third-quarter revenue in October, and both pointed to the same pattern: solid demand in the United States, Japan and Europe, and a softer market in China. For executives and investors who follow the sector, the figures offer a read on high-end spending heading into the year-end season.
LVMH: jewelry and retail offset fashion
LVMH reported revenue of €57.1 billion for the first nine months of 2026, on October 12. That was down 2% as reported but up 2% on an organic basis, which strips out currency and changes in the group’s scope. Third-quarter organic growth was 1%. The group said the quarter reflected “a less buoyant environment in China,” while the United States, Europe and Japan saw good growth.
Results varied widely by division. Fashion and leather goods, the largest business, fell 5% organically in the third quarter and 2% over nine months. Watches and jewelry grew 8% over nine months, driven by jewelry, including Tiffany & Co. and Bvlgari. Selective retailing, which includes Sephora, grew 6%, and wines and spirits grew 5%. LVMH also reported that Marc Jacobs was sold to WHP Global on September 1 and that most of DFS’ businesses were sold.
Hermès: leather goods and the Americas
Hermès reported revenue of €12.3 billion at the end of September, on October 22. That was up 6% at constant exchange rates and 3% at current rates. Third-quarter sales were €4.1 billion, up 4% at constant rates and 6% at current rates.
Over nine months at constant rates, sales rose 13% in the Americas, 11% in Japan and 9% in Europe outside France. Asia excluding Japan grew 2%, with Greater China stable, and the area that mainly covers the Middle East fell 4%. Leather goods and saddlery, the company’s core business, grew 10% over nine months and 10.8% in the third quarter. Ready-to-wear and accessories grew 1%, while perfume and beauty and watches declined slightly. The company plans three new leather goods workshops in France, the last due by 2030.
Currency and what comes next
Exchange rates weighed on both groups. Hermès said currency movements reduced its revenue by about €310 million over nine months, and LVMH put the currency effect at minus 3% for the period. Both companies described the economic and geopolitical environment as uncertain, and both said they remain confident in their long-term strategies. Hermès will publish full-year results on February 12, 2027.
This article summarizes company disclosures and is not investment advice.
