LVMH’s Wine Unit Returns to Growth

LVMH said on Wednesday that its wine and spirits division returned to growth in the first quarter of 2026, helped by a steadier Champagne business and stronger demand in Asia, even as sales in the United States remained soft and the outlook for Cognac stayed uncertain.

The French luxury group reported organic revenue growth of 5% at Moët Hennessy, its wine and spirits unit, to €1.27 billion in the three months ended March 31. Reported sales fell 2%, reflecting currency effects and other accounting factors. Within the division, Champagne and wines posted organic revenue growth of 5% to €663 million.

LVMH said Champagne had made “a good start to the year,” especially in Europe, while Provence rosé wines kept their momentum. The company also pointed to a favorable calendar effect tied to Chinese New Year compared with 2025, which helped support demand in Asia.

Cécile Cabanis, LVMH’s chief financial officer, said the wine and spirits business showed “solid growth” and that Champagne had stabilized after a weaker period late last year. She said wines were also performing well. But she warned that the boost from Cognac shipments may not last through the rest of the year.

“The shipment enabled to count the growth for the start of the year,” she said. “This helped to mitigate a demand in the US that is still soft and that we don’t see moving a lot.”

Her comments suggested that the first-quarter rebound may not be repeated in the second quarter. “Q2 will not be repeating Q1, overall, given this impact,” she said, adding that LVMH was pleased that Champagne had stabilized and that wines were doing well.

The first-quarter improvement marked a reversal from late 2025, when Moët Hennessy posted a 9% organic decline in the fourth quarter and ended the year down 5%. The latest results indicate that demand for Champagne and certain wines has improved, but they also show how uneven the recovery remains across markets.

At the group level, LVMH reported organic sales growth of 1% in the quarter, while reported revenue fell 6% to €19 billion. Asia excluding Japan rose 7%, making it the strongest region for the company, while sales in the United States increased 3%.

LVMH said it remained cautious because of geopolitical and economic uncertainty, including tensions linked to the conflict in the Middle East. The company said it would continue to rely on innovation, brand development and selective distribution as it seeks to strengthen its position in luxury goods this year.