LVMH posted stronger first-half growth in wines and spirits.

LVMH reported first-half 2026 results on Monday showing stronger momentum in its wines and spirits business, a closely watched division for the global drinks industry as investors look for signs of demand in premium cognac and whisky.

The French luxury group said first-half revenue reached €38.6bn. Recurring operating profit came to €8.7bn, down 4%, while group share of net profit was unchanged from a year earlier at €5.7bn. The company said its operating margin held at 22.5%.

Within wines and spirits, organic sales rose 5% in the first half to €2.598bn. Recurring operating profit for the division increased 11% to €582m. The figures point to firmer trading in a business that includes some of the world’s best-known Champagne, cognac and spirits brands.

For beverage producers and distributors, the performance matters beyond LVMH’s own portfolio. Growth in high-end spirits can be read as a sign that consumers are still spending on premium bottles despite a mixed economic backdrop. It may also shape expectations for margins across the sector, especially for companies exposed to cognac and whisky, where pricing power and brand strength remain central.

LVMH said growth accelerated in the second quarter, with organic sales for the group up 3%, or 4% excluding the impact of the conflict in the Middle East. The company did not provide a detailed breakdown for wines and spirits by category or region in the brief results statement, but the division’s first-half gains stood out against more uneven trends elsewhere in the group.

Fashion and leather goods, LVMH’s largest business, returned to organic growth in the second quarter, helped by what the company described as a sharp acceleration in the United States, despite disruption linked to the conflict in the Middle East. First-half revenue in that division totaled €18.146bn, down 1%. Operating profit there fell 7% to €6.195bn, with LVMH saying currency movements weighed on the result, although the operating margin remained at what it called a very high level.

Perfumes and cosmetics posted stable organic sales in the first half at €3.914bn. LVMH said that business continued to rely on product innovation and highly selective distribution, while its operating margin edged slightly higher.

Watches and jewelry showed faster growth. Organic sales in that division rose 9% in the first half to €5.225bn, with an acceleration in the second quarter when organic growth reached 11%. LVMH said the operating margin improved over the six-month period.

The first-half update arrives at a time when drinks companies are being measured not only on volume growth but also on their ability to defend profitability as costs, currencies and geopolitical risks remain volatile. In that context, LVMH’s wines and spirits numbers are likely to be read as a positive signal for the upper end of the market, even if broader consumer demand remains uneven across regions and categories.

LVMH did not announce any change to guidance in the statement released with its half-year figures. Still, the improvement in wines and spirits is likely to draw attention because that division has often served as an early indicator of sentiment in luxury beverages, particularly in export-driven segments such as cognac. The rise in recurring operating profit suggests that premium positioning continues to support earnings even when conditions are less favorable in other parts of the market.