It is a sharp reversal from the 1% organic growth Louis Vuitton owner LVMH had in the third quarter of 2025.
Shares of LVMH have plummeted 28% in the first quarter of 2026, marking the worst start to a year for the French luxury conglomerate since 1989, according to a Bloomberg analysis.
The decline is more severe than the downturns the company has seen during the 2008 financial crisis, the 2020 pandemic, and the 2001 dot-com bubble.
It is a sharp reversal from the 1% organic growth it had in the third quarter of 2025.
LVMH, which owns iconic brands like Louis Vuitton, Dior, Celine, and Fendi, is often viewed as a bellwether of the broader luxury market.
What happened?
The luxury sector is currently grappling with a perfect storm of trade tariffs, geopolitical instability, and a global cost-of-living crisis that has left consumers strapped for cash.
Cartier owner Richemont and Birkin bag maker Hermes have lost nearly 20% and 25% of their market value, respectively.
LVMH’s financial fallout has extended to CEO Bernard Arnault, whose net worth dropped by $55.4 billion in just three months. It is the largest individual loss recorded on the Bloomberg Billionaires Index, which ranks the top 500 wealthiest people.