LVMH’s third-quarter 2026 revenue report is set to be released on October 12, with the watches and jewellery division expected to be under scrutiny. The division reported a 9% organic growth in the first half of 2026, outperforming other segments.
The watches and jewellery division’s revenue reached EUR 5.22bn, with a 9% increase in profit to EUR 831m. This growth is notable, given the overall group’s reported revenue fell by 3% in the first half of 2026.
Watches and Jewellery Performance
The division’s strength is the most encouraging data point in an otherwise cautious luxury picture. The 9% organic gain and higher profit from watches and jewellery suggest that branded hard luxury has held its footing better than fashion and leather goods.
The demand for watches and jewellery is not coming from the US, where Swiss watch exports fell by 19.4% to CHF 197.5 million in August 2026. Instead, the growth is driven by other markets, which raises concerns about how much of the branded-watch tailwind American independents can catch this quarter.
Market Expectations
The equity market has not rewarded LVMH’s resilience, with the stock price down 40% since the start of the year. The stock closed at EUR 381.20 on Friday, just 1.0% above its 52-week trough.
The low expectations and potential for an outsized move on any surprise make the October 12 report significant, not just for LVMH but also for US jewelers and watch retailers framing fourth-quarter demand on their own calls.
The split between the top of the market and the retail middle is a key story. Morgan Stanley’s Q2 2026 work put Patek Philippe’s value retention at 15.4%, ahead of Rolex at 9.8% and Audemars Piguet at 3%. This secondary-market strength clusters tightly at the top of the brand ladder.
Trade Shows and Market Trends
The fall trade-show season is in full swing, with the 58th Watch and Jewellery Middle East Show and the Select Jewelry Show taking place in October. The shows coincide with the September polished-price data, which will shape buying decisions.
The 1ct RAPI was up 0.46% for the month, and Titan Company’s jewelry revenue increased by 21% in its September quarter. These figures frame the buying mood heading into the shows, with demand somewhere being real.
For US buyers, the task is to reconcile the softening domestic watch-import number with the demand and decide how aggressively to commit for the holiday window. The Q3 print will answer whether the watches and jewellery momentum carries into the second half or fades toward the group’s slower pace.
A division delivering revenue and profit has become the anchor of the LVMH story. They have become key to the group’s performance. Any deceleration would reverberate through the sector, especially with the US show season peaking and auction demand running hot in the watch rooms. LVMH’s performance will be closely watched by the industry, and the October 12 report will provide valuable insights into the state of the luxury market.
The watches and jewellery division’s performance is closely tied to the overall health of the luxury market. It is a significant indicator of the market’s trends and demand. The division’s success or failure will have a direct impact on the group’s overall performance, making the October 12 report a highly anticipated event in the industry.
