In brief
- LVMH recorded organic growth of 1% in Q3 2026, with the Watches and Jewellery division up 6%.
- Hermès achieved a turnover of 4.1 billion euros (+4.3% at constant exchange rates), driven by leather goods (+10.8%).
- Kering fell by 1% on a comparable basis, impacted by a 6% decline at Gucci.
- Brunello Cucinelli outperformed the sector with growth of 13.5% in the third quarter.
The global luxury industry did not deliver a uniform verdict for the third quarter of 2026. Analysis of the results published by the sector’s major conglomerates reveals a fragmented trajectory, marked by the resilience of high jewellery and the slowdown in the Chinese market. While performance fluctuated between the contained growth of leaders and the decline of certain players undergoing restructuring, the geography of sales confirms the strength of the United States and Japan against the neutrality of Asia-Pacific.
This contrasting economic landscape reflects profound structural transformations within the global lifestyle and high-end ecosystem. Historically accustomed to homogeneous growth rates driven by unfailing global demand, the industry is now facing much more selective consumption trade-offs. Priority personal buyers and ultra-high-net-worth clients are reassessing their preferences, paying increased attention to timeless craftsmanship, heritage authenticity and perceived rarity. In this context of adjustment, the ability of the major houses to maintain their desirability depends heavily on the management of their distribution, their price positioning and the balance of their business portfolio.
LVMH driven by jewellery and distribution
In the third quarter of 2026, LVMH achieved a turnover of 18.5 billion euros, representing organic growth of 1%. Over the first nine months of the year, the French giant accumulated 57.1 billion euros in activity. While the Fashion and Leather Goods division declined by 5% organically over the quarter to 8.2 billion euros, the Watches and Jewellery division grew by 6%, at the same rate as the Wines and Spirits division. According to published information, momentum remains favourable in the American, European and Japanese markets, offsetting the weak activity recorded in Asia excluding Japan (-5%).
The world’s leading group in the sector, LVMH Moët Hennessy Louis Vuitton brings together an exceptional collection of prestigious houses in five major sectors of activity: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewellery, and Selective Distribution. The strength of the group’s model is based on the decentralisation of its organisation, preserving the creative autonomy and historical roots of iconic brands while offering them the strategic, financial and logistical support of a world leader. The performance of the Watches and Jewellery division during this period illustrates the solidity of a portfolio that relies on the complementarity of its various entities, capable of absorbing economic cycles thanks to the extreme diversity of their offer and the strength of their international image.
Hermès relies on the strength of leather
Hermès continues its development with quarterly turnover of 4.1 billion euros, up 4.3% at constant exchange rates. The Leather Goods and Saddlery division recorded a 10.8% increase, reaffirming its role as a pillar in the face of the decline in ready-to-wear (-2%) and watchmaking (-6%). Asia excluding Japan showed a stable level of sales (0.0%), a zone that represents nearly 40% of the house’s activity. Growth remains sustained in Japan (+9.6%), in the Americas (+8.8%) and in the European market excluding France (+9.5%), allowing the group to maintain solid profitability.
Since its foundation in Paris in 1837 as a manufacturer of harnesses and saddles, the house of Hermès has remained faithful to its artisanal model and its values of excellence. The integrated mastery of its know-how, the rigorous control of its supply chain and its network of workshops mostly located in France constitute the heart of its identity. Leather Goods and Saddlery, the founding craft of the house, continues to exert a strong attraction for a clientele in search of durable and timeless objects. The mastery of its distribution and the careful management of its production capacities allow Hermès to preserve the exclusivity of its creations, a strategic positioning that confirms its relevance in different regions of the world, particularly in the Japanese market and the American continent.
Kering accelerates the rationalisation of its network
Kering posted a turnover of 3.3 billion euros in the third quarter, a slight decrease of 1% on a comparable basis. Gucci sales fell by 6% to 1.29 billion euros, despite the recovery observed at Saint Laurent and the continued outperformance of Bottega Veneta. Kering’s Jewellery division recorded an 11% increase, confirming the polarisation of consumption trade-offs towards safe-haven values. Faced with declining footfall in Asia-Pacific (-8% in retail), the group has revised its optimisation targets and now anticipates at least 125 net boutique closures over the full 2026 financial year.
The Kering group has established itself as one of the major players in the global luxury industry by developing a collection of fashion, leather goods and jewellery houses renowned for their creative freedom. The group’s history is marked by a successful transformation towards a pure-play high-end model, built around iconic brands. As part of the strategic developments underway, the focus is on strengthening long-term desirability, increasing the selectivity of directly operated distribution and promoting exceptional craftsmanship. The resilience of the jewellery division within the portfolio highlights the strategic importance of perennial creations, while the adjustment of the physical boutique network aims to optimise operational efficiency and the quality of the customer experience on a global scale.
Miu Miu slows down, Cucinelli confirms its momentum
In the rest of the sector, Prada Group totalled 4.5 billion euros over nine months, posting adjusted organic growth of 1% in the third quarter, marked by a slowdown in the pace of expansion for Miu Miu. Moncler stagnated at 605.5 million euros over the period, impacted by an 8% decline in the EMEA zone. Conversely, Brunello Cucinelli recorded a 13.5% increase to 374.2 million euros, leading the Italian house to raise its annual growth forecasts to approximately 12%. This heterogeneity in publications led to a selective reaction from the financial markets, penalising deviations from consensus while valuing the most protected business models.
Observation of the Italian houses provides additional insight into the trends crossing the sector. The Prada group, with its historical roots in Milan and its identity focused on creative avant-garde, illustrates the need to precisely manage the evolution of its different lines to maintain a global balance. For its part, Brunello Cucinelli, founded in the village of Solomeo in Umbria, stands out for its positioning focused on timeless luxury, the very high quality of raw materials such as cashmere, and a development model that respects the local artisanal fabric. As for the Moncler group, a specialist in high-end outerwear, its sensitivity to variations in tourist footfall and regional climate conditions in the EMEA zone testifies to the multiple cyclical factors that influence the quarterly performance of contemporary brands.
Geographical analysis and regional market dynamics
A detailed examination of geographical performance highlights a global landscape characterised by significant differences in pace depending on the location of sales networks. Asia excluding Japan, traditionally considered the main driver of global industry growth, is going through a phase of activity normalisation. Local purchasing habits are undergoing significant readjustments, marked by increased consumer caution in the face of the economic situation and by a redirection of part of spending during international travel. This situation explains the stability observed in this zone for some houses and the decline recorded by other players in the sector.
Conversely, the Japanese market continues to show remarkable vitality. Supported by solid domestic demand for exceptional pieces as well as by the continuous influx of international visitors attracted by price attractiveness and quality of service, Japan remains a very dynamic growth hub for major European brands. For their part, the Americas are showing great consistency, supported by the resilience of high-end consumption and the stability of major physical sales networks. Finally, the European market continues its trajectory, driven both by the loyalty of local clienteles to major historical brands and by the constant footfall in fashion capitals.
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