Luxury recovery is finally back on Wall Street's radar. LVMH reported ~$22.2B in second-quarter sales, with 3% organic growth that topped analyst expectations. Its crown jewel, the fashion and leather goods division, returned to growth with a 1% gain, ending a two-year slump.
- US sales surged 6% organically, as AI and tech wealth kept affluent Americans splurging on Louis Vuitton and Dior, outpacing every other geography.
- Watches & Jewellery led the pack with 11% organic growth, powered by mid-teens gains at Tiffany and Bulgari as shoppers pivoted toward hard luxury.
Not out of the woods yet: CFO Cécile Cabanis said luxury demand remains strongest “where wealth is created.” But the US-Israeli war against Iran still shaved roughly one percentage point off second-quarter growth by weighing on Gulf tourism and European foot traffic. LVMH may have broken the ice, but investors now turn to Kering and Hermès after Richemont's strong quarter.
