LVMH's Wines & Spirits business group posted a notable turnaround in the first half of 2026, delivering organic revenue growth of 5% and an 11% increase in profit from recurring operations — a bright spot in an otherwise mixed set of results for the luxury conglomerate.
According to LVMH's July 27, 2026 half-year results announcement, the Wines & Spirits division generated revenue of €2,598 million in H1 2026, roughly flat on a reported basis versus €2,588 million in H1 2025, but up 5% organically once currency and perimeter effects are stripped out. That organic growth held steady at 5% in the second quarter alone, signaling the recovery was not a one-off.
Profitability improved more sharply: profit from recurring operations rose to €582 million, up 11% from €524 million a year earlier — the strongest percentage gain of any LVMH business group in the period.
By quarter, the division recorded revenue of €1,273 million in Q1 and €1,324 million in Q2 2026.
What Drove the Recovery
LVMH attributed the improvement to a combination of demand recovery and disciplined cost management:
- Champagne: The business showed encouraging signs, particularly for prestige cuvées. Moët & Chandon began its second season as the Official Champagne of Formula 1 Grand Prix races.
- Cognac: In China, Hennessy benefited from positive momentum that started during Chinese New Year and continued through the half.
- Innovation: The V.S. range of ready-to-serve cocktails launched in the United States, extending Hennessy into new occasions and formats.
- Provence: Rosé wines from the region continued to make good progress.
- Cost discipline: Alongside the demand recovery, LVMH emphasized rigorous cost control, with brand desirability and innovation remaining core strategic priorities for the division.
Context Within the Group
LVMH's overall first-half 2026 revenue reached €38.6 billion, down 3% on a reported basis but up 2% organically, with growth accelerating to 3% organically in the second quarter. Group profit from recurring operations was €8.7 billion, an operating margin of 22.5%, while free cash flow came in at €4.1 billion.
Chairman and CEO Bernard Arnault specifically cited "the recovery in champagne and cognac" as one of the contributors to the group's improved momentum in the second quarter, alongside strength at Christian Dior, Louis Vuitton's new stores in Beijing and Seoul, and Tiffany and Bvlgari's core jewelry lines.
Compared with LVMH's other business groups, Wines & Spirits' 5% organic growth outpaced Fashion & Leather Goods (-1%) and Perfumes & Cosmetics (flat), though it trailed Watches & Jewelry (+9%) and Selective Retailing (+5%, tied).
Outlook
While LVMH's broader guidance for 2026 remains cautious given ongoing geopolitical and economic uncertainty — including the effects of the conflict in the Middle East — the Wines & Spirits results suggest that the prolonged slowdown in champagne and cognac demand, particularly in China and the US, may be starting to ease. The division's continued focus on cost control alongside brand investment positions it to build on the recovery in the second half of the year.
Source: LVMH