BUSINESS

LVMH and Kering Report Divergent Sales Performance in China

Published: Apr. 16, 2026 11:03 p.m. GMT+8

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A Louis Vuitton flagship store in Nanjing. Photo: VCG

The latest first-quarter earnings from luxury giants LVMH and Kering highlight a sharp divergence in their performance in the Chinese market, alongside a common revenue drag from the ongoing conflict in the Middle East.

These results underscore how an uneven economic recovery and escalating geopolitical tensions are reshaping global demand for high-end goods.

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LVMH Q1 revenue €19.1B, +1% YoY ex-FX; Asia ex-Japan +7% from China; Middle East (6% sales) down 30-70%.
Kering Q1 revenue flat €3.6B; North America +9%, Asia ex-Japan -4% from China drop; Middle East (5% sales) -11%.
Divergence in China performance; both impacted by Middle East conflict; luxury brands lose social media traction there.

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Who’s Who

LVMH Moët Hennessy Louis Vuitton SE: LVMH reported Q1 revenue of €19.1B ($22.5B), up 1% YoY ex-FX. Asia ex-Japan sales rose 7%—best quarter since 2023—driven by strong China domestic demand during Lunar New Year. Europe/Japan down 3% on weak tourism. Middle East conflict (6% of sales) saw 30-70% demand plunge, cutting growth by 1pp. Louis Vuitton engagement dropped on Chinese social media.

Kering SA: Kering SA reported flat Q1 revenue of 3.6 billion euros. North America grew 9%, but Asia-Pacific (ex-Japan) fell 4% due to mid-double-digit drop in Chinese mainland. Gucci faces challenges; plans localized marketing, store upgrades, and minority investment in ICCF Group (ICICLE). Middle East sales (5% of revenue) down 11%.

ICCF Group: Kering announced a minority investment in ICCF Group, parent of Chinese womenswear brand ICICLE, to support its international expansion and diversify product offerings. (28 words)

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