Cosmetics: Apr-Jun results at French company LVMH

Research evidence excerpt

Cosmetics: Apr-Jun results at French company LVMH

Cosmetics: Apr–Jun results at Global Markets Research 28 July 2026

French company LVMH

EQUITY: JAPAN TOILETRIES & COSMETICS

Research Analysts

Accelerated sales growth in US and Japan in Q2 Japan toiletries & cosmetics

Yuji Ohana - NSC

yuji.ohana@nomura.comQuick Note +81-3-6703-1143

US Sephora sales remained strong

France-based LVMH Moët Hennessy Louis Vuitton (LVMH) announced Apr–Jun (Q2)

results on 27 July (local time). Organic sales were up 3% y-y, slightly higher than the

Bloomberg consensus forecast for a 2% increase. However, the company's US ADR

closed down around 1% d-d, which we think is due in part to growth of only 1% in the

mainstay fashion & leather goods (F&LG) division, slightly below the consensus forecast

of 1.5%.

By region, sales were up 6% in the US, flat in Europe, up 14% in Japan, and up 4% in

Asia ex Japan, with sales in the US and Japan higher than the respective consensus

forecasts. Domestic demand and tax-free sales look to have been strong in both

countries, with sales growth in the US driven by the F&LG division, jewelry operations,

and cosmetics specialty store Sephora. The F&LG division and cosmetics look to have

contributed to sales growth in Japan. Demand from Chinese consumers in Asia slowed

from 7% growth in Q1, but management said that this was partly due to consumption

shifting to other regions such as Japan via the travel retail channel and said that there had

been no change in consumption trends from Q1.

For cosmetics, sales were up 6% y-y in the Selective Retailing segment. Sales at

cosmetics specialty store Sephora were strong in regions such as the Americas, Europe,

and China, with makeup and hair care products apparently selling well. In particular, the