f our model”. However, LVMH shares fell around 2.6 per cent in Paris on Tuesday after the results were out. The sticking point was its fashion and leather goods division, which posted 1 per cent organic growth in the second quarter. It was the first positive quarter in two years, but short of the roughly 1.7 per cent analysts had pencilled in. That gap between relief and disappointment shaped the entire set of results. Revenue for the half came to €38.6 billion, up 2 per cent organically but down 3 per cent as reported, after a 5-point currency hit and a 1-point perimeter effect from the sale of DFS’s Greater China business. Net profit of €5.7 billion was flat year on year.  Watches and jewellery were up 9 per cent organically in the half and 11 per cent in the second quarter, with Tiffany & Co. and Bvlgari both growing mid-teens for the quarter. Meanwhile, roughly 60 per cent of Tiffany’s business has been reworked, and about 40 per cent of its stores have been renovated.  In the three months to June, LVMH’s fashion and leather goods division grew organically for the first time since 2024, accelerating to 3 per cent. Dior grew slightly ahead of the division average in Q2, with American and Japanese clients up double digits and strong sell-through in bags and women’s ready-to-wear. Cabanis batted away a question from Kepler Cheuvreux about whether supply constraints from Dior’s production re-internalisation capped the upside, conceding only that creative transitions make supply chains “a bit more complex”.  Louis Vuitton, in line with the division, leaned on the 130th anniversary of the Monogram, with the Alma and Speedy back in growth. Celine and Fendi improved sequentially but appear still negative.   Wines and spirits posted 5 per cent organic growth and an 11 per cent profit jump, driven by champagne’s prestige cuvées and recovering cognac demand in China. “It’s not like we’re stocking. We are selling, and the stocks are much healthier than they used to be,” Cabanis said.  US cognac depletions remain negative, a reminder that the category’s recovery is being carried from Asia. Selective Retailing grew 5 per cent on sustained momentum at Sephora, whose growth splits roughly evenly between like-for-like and expansion. Perfumes and cosmetics remained flat.  Chasing quick growth, Cabanis said, “probably would mean damaging the brand equity, and we want to continue to build the brand desirability and equity for the long term”. The division has nonetheless lagged prestige beauty peers for several years running, and travel retail continues to be a drag. America accelerates, China marks time The US accelerated to 6 per cent growth in the second quarter, driven by strong local demand and returning tourism. Americans were the single biggest contributor to global growth in fashion and leather goods, up in the high single digits. Japan grew by 5 per cent in the half, with an increasingly diversified tourist base, while South Korea stood out in jewellery. Asia excluding Japan was the best-performing region at 6 per cent for the half, but decelerated in Q2.  “Chinese local consumption is high by historical standards,” Cabanis said. “Chinese demand is increasingly clustered around shopping events. You need to ensure that you have a sufficient period of time in order to really analyse the demand.” New Vuitton flagships in Beijing and Seoul performed strongly. Middle Eastern clients shaved a point off group growth in each quarter, though the drag eased steadily through June, and Cabanis cautioned it remains “very much unknown as to how it is going to develop”. “While continuing to pay very close attention to margins, we are entering the second half of the year with renewed confidence in the long-term potential of our Maisons and in our highly committed teams to continue to stand out and reinforce LVMH’s leadership position,” Bernard Arnault, chairman and CEO of LVMH, said. Further reading: LVMH’s Q1: Hope for luxury recovery wanes as Middle East conflict continues.