Major luxury chains ring in upbeat Q1 as Chinese spending rebounds

Luxury's biggest houses reported steady growth in China at the start of 2026, signaling a continued recovery in high-end spending even as global economic and geopolitical uncertainties persist.

LVMH Moet Hennessy Louis Vuitton, one of the world's leading high-quality product groups, said first-quarter revenue reached 19.1 billion euros ($22.4 billion), with solid demand across China, the broader Asia region and the United States.

The company pointed to resilient consumer appetite and ongoing innovation as key drivers, despite disruptions tied in part to tensions in the Middle East.

Asia excluding Japan delivered strong growth, extending an improving trajectory that began in the second half of 2025. Within its core fashion and leather goods division, LVMH saw recovering demand from Chinese consumers, supporting performance at flagship brand Louis Vuitton.

The label continued to invest in experiential retail, including a new flagship store in Beijing and its "LV The Place" concept in Seoul, both of which generated strong customer engagement.

The group's wines and spirits division posted 5 percent organic revenue growth in the quarter, helped by a favorable Chinese New Year timing that lifted cognac sales compared with the prior year.

Selective retailing rose 4 percent organically, as DFS — LVMH's travel retail arm — agreed to sell certain China operations to China Tourism Group Duty Free, a leading Chinese travel retail operator.

Elsewhere, Italian luxury brand Brunello Cucinelli also reported strong momentum tied to China. The company posted a 14 percent increase in first-quarter revenue, with growth in March in line with the first two months of the year.

Executive Chairman Brunello Cucinelli said retail channels performed particularly well, especially in the US and China. Revenue in Asia rose 17.8 percent at constant exchange rates to 106.7 million euros, accounting for 28.9 percent of total sales.

The region's performance marked a further improvement from the fourth quarter, underscoring growing brand momentum and demand for top-tier luxury positioning.

"In China, there is notably a growing demand for high-end pret-a-porter (or ready-to-wear), with a strong focus on garments of elevated quality and craftsmanship," Cucinelli said. "A very significant contribution from new clients is also evident, complementing the already loyal existing clients, who are increasingly oriented towards the purchase of particularly special garments."

According to Bain & Company's 2025 Chinese Personal Luxury Goods Market report, after riding the recovery momentum in the second half of 2025, the personal luxury goods market is expected to show more positive signs in 2026. China will remain a cornerstone of global luxury market growth, said the report.

wangzhuoqiong@chinadaily.com.cn