According to The Times of India, LVMH reported a 5% fall in organic sales at its fashion and leather goods division in the third quarter of 2026, the unit housing Louis Vuitton and Dior.

The division generated €8.25 billion in revenue, down from €8.50 billion a year earlier, and the decline was steeper than analysts had expected.

The setback came just one quarter after the business had returned to growth following nearly two years of declines, with the newspaper reporting that weaker demand in China drove much of the drop.

Group-wide, total third-quarter revenue was €18.5 billion, up 1% organically but slightly below the 1.3% growth analysts anticipated.

The Times of India reports LVMH's fashion and leather goods business benefited from a "buoyant US market" but was hurt by the slowdown in Chinese demand, with US sales up 5% organically — a pace that eased from 6% the previous quarter — while sales in Asia excluding Japan fell 5%.

CFO Cécile Cabanis told the outlet the changed backdrop for Chinese consumers is "delaying the recovery a bit," insisting "there's nothing structural or specific that would impair the recovery."

Louis Vuitton also faced a trademark backlash in China over a four-petal flower claim against tea chain Molly Tea, and a one-off logistics issue cost the brand about one percentage point of growth, per the report.

CNA Luxury, reprinting a Financial Times analysis, reports that around a fifth of luxury customers — those for whom a Lady Dior bag is an indulgence rather than a staple — have deserted high-end stores since 2022, according to Bain & Co., after years of price hikes.

Their spending is now flowing to the US$50–US$300 mid-market, which McKinsey identifies as the fastest-growing apparel segment. Uniqlo's parent Fast Retailing grew revenue by almost a fifth in the year to end-August, while Zara's selling prices and gross margins are rising.

Uniqlo has launched a JW Anderson collaboration and Mango turned to Victoria Beckham to court these shoppers, CNA Luxury notes.

The reversal is stark in market terms: CNA Luxury reports that five years ago Fast Retailing's forward price-to-earnings premium over LVMH was roughly a third, and is now well over double, according to S&P Capital IQ.

Meanwhile, The Times of India says LVMH shares had lost around 40% of their value over 2026 by the time of the results.

Bright spots exist — Sephora's selective retailing arm grew 8% organically, watches and jewellery 6%, and Dior is seeing strong demand for Jonathan Anderson-designed ready-to-wear and leather goods — but the news outlet notes fashion's recovery may take longer than hoped, since luxury cannot discount £10,000 handbags without destroying brand value, leaving quality and workmanship as the last refuge.