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LVMH shares seen falling as Iran war weighs on fashion sales

Shares in LVMH LVMH.PA were seen falling 2% to 3% in premarket on Tuesday, after the French luxury giant reported overnight second-quarter sales that failed to convince investors about an imminent recovery at its most profitable division.

July 28, 2026

Reuters

LVMH shares seen falling as Iran war weighs on fashion sales

FILE PHOTO: The logo of LVMH is seen at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 17, 2026.

Abdul Saboor/Reuters

Shares in LVMH LVMH.PA were seen falling 2% to 3% in premarket on Tuesday, after the French luxury giant reported overnight second-quarter sales that failed to convince investors about an imminent recovery at its most profitable division.


The owner of Louis Vuitton, Dior and Moet & Chandon champagne said quarterly sales at its fashion and leather goods division, which generates the bulk of its operating profit, grew 1% when adjusted for currency swings, to €8.90 billion ($10.12 billion).


That was the segment's first quarterly increase in two years, though it still fell short of analysts' expectations for a 1.7% rise. LVMH flagged weaker spending in Europe, where tourism has been hit by the Iran war.


"All the focus was on FLG," a trader said after the results.


The question remains whether the division can meet full-year expectations despite a tougher comparison in the third quarter, brokerage RBC said in a note, adding this was necessary "for the stock to start working" in its view.


LVMH reported 3% overall organic growth in the quarter, leaving questions open on whether its relatively modest sales growth was enough to reassure investors that the $400-billion luxury sector is decisively emerging from a two-year downturn.


"Our thesis for LVMH hinges on the recovery in luxury sector performance and the group's brands overperforming the industry in the long run," Morningstar analysts said in a note to clients.


"So far, LVMH is still lagging peers, although trends are turning slightly more positive," the brokerage added.


($1 = 0.8798 euros)


-Reporting by Alessandro Parodi in Gdansk, editing by Milla Nissi-Prussak/Reuters

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