LVMH Beauty Divisions Show Mixed Q3 2026 Performance

LVMH's beauty divisions delivered mixed performance in the third quarter of 2026, with fragrance growth and Sephora's expansion offsetting a decline in fashion and leather goods. Parfums Christian Dior and Guerlain drove growth with key fragrance launches, while Sephora entered new European markets and expanded its exclusive brand portfolio.

Guerlain’s growth was powered by the launch of L’Heure Bleue, alongside its L’Art & La Matière and Aqua Allegoria fragrance collections. The brand also saw accelerating growth in its Rouge G lipstick line. At Parfums Christian Dior, performance was bolstered by J’adore Intense, Sauvage Extrait, eau de parfum versions of Dior Addict, and new additions to La Collection Privée. Makeup, particularly the Forever and Backstage ranges, provided further support. Other perfume houses also contributed: Parfums Givenchy focused on developing L’Interdit, Maison Francis Kurkdjian expanded its Oud collection, and Acqua di Parma celebrated its 110th anniversary.

Rodolphe Ozun, Director of Financial Communications, stated that fragrances remained the main driver of growth year-to-date. He also highlighted Sephora's broad momentum. "Sephora continues to excite worldwide with growth across all regions, notably its two largest markets, the US and Europe," Ozun said. The retailer gained market share in several countries during the quarter. Its growth was broad-based across markets and categories, with like-for-like sales accounting for around half of the reported increase. Trading improved towards the end of the quarter, including among Chinese shoppers, according to CFO Cécile Cabanis.

Fashion division rebounds after two-year decline

The Fashion & Leather Goods division posted a 5% organic sales decline to €8.245 billion in Q3 2026. This result, however, beat analyst expectations of a 1.6% fall. It follows a 1% organic increase in Q2 2026, which was the division's first gain in two years.

LVMH balances mixed results with selective retail strength

Over the first nine months of 2026, LVMH's perfume and cosmetics division remained flat organically, while Selective Retailing grew 6% organically to €12.5 billion. The group's total nine-month revenue reached a record €57.1 billion, with 2% organic growth. The US, Europe, and Japan saw good growth in Q3, while the Middle East remained resilient for perfumes and cosmetics. Asia and Japan also recorded good momentum in the division. LVMH cited a less buoyant environment in China as affecting business activity in the quarter. The company stated it remained very solid in an uncertain geopolitical and economic environment due to its diverse portfolio.

Sephora's expansion fuels beauty momentum

Sephora's physical and brand expansion was a key growth engine. The retailer entered Belgium and Croatia in Q3 2026 and opened its inaugural boutique store on London's Carnaby Street. Its exclusive launch offerings included Hailey Bieber's Rhode brand, which landed in European stores with a Café Rhode pop-up, and several Chinese beauty brands. Sephora also announced a partnership with Marks & Spencer in the UK. CFO Cécile Cabanis stressed the need to accelerate brand initiatives rather than rely on demand recovery.

Outlook hinges on brand desirability and retail agility

Looking forward, LVMH said it will maintain a strategy focused on continuously enhancing the desirability of its brands. The company stated it remained confident despite uncertainty and would draw on the authenticity and quality of its products, its excellence in retail, and its agile organisation. The Perfumes & Cosmetics division appointed a Chief Operating Officer to integrate manufacturing, supply chain, and purchasing. LVMH will draw on its powerful brands and the talent of its teams to reinforce its global leadership position in luxury goods once again in 2026.