LVMH Moët Hennessy Louis Vuitton reported on Oct. 12 that its Watches and Jewelry division grew 6% on an organic basis in the third quarter of 2026, to revenue of 2.5 billion euros, making the unit that includes Bulgari, Tiffany & Co. and TAG Heuer one of the few bright spots in an otherwise sluggish quarter for the world's largest luxury group.

For investors in Asia, the split inside the numbers matters more than the headline. LVMH said jewelry did most of the work, while the group's biggest business, Fashion and Leather Goods, fell 5% organically as demand in mainland China cooled. That pattern, hard luxury holding up while handbags slip, is the same one Hong Kong retailers and Swiss watch exporters have been reporting through the autumn.

LVMH Watches and Jewelry Outpaces the Group

Group revenue in the July to September quarter was 18.5 billion euros, up 1% organically, LVMH said in its Oct. 12 release. That was a slowdown from 3% organic growth in the second quarter, according to AWP Alliance News.

Watches and Jewelry revenue rose from 2.32 billion euros a year earlier, AWP reported. Over the first nine months, the division brought in 7.73 billion euros, up 8% organically and 4% on a reported basis, the fastest growth of any LVMH business group over that period.

The company does not disclose sales by brand. Monochrome Watches, the Swiss trade publication, noted that the lack of a brand breakdown makes it impossible to separate how much of the gain came from watchmaking rather than jewelry.

What LVMH did say pointed toward jewelry. The release cited Bulgari's Eclettica high jewelry and prestige watch line, which it said generated record-breaking revenue, and a Bulgari Kaleidos exhibition that traveled to Shanghai. Tiffany kept renovating its stores and leaned on its HardWear, Knot and Sixteen Stone lines, and presented its Blue Book 2026 high jewelry collection in New York and later in Venice. Chaumet expanded its Bee de Chaumet range.

On watches, the release was thin. TAG Heuer was mentioned only for its Formula 1 presence, including its role as title partner of the race in Madrid. No other watch brand was named in the quarterly commentary.

China Drags, Japan and the US Grow

LVMH attributed the quarter's slowdown to what it called "a less buoyant environment in China." Fashion and Leather Goods revenue fell to 8.25 billion euros from 8.5 billion euros a year earlier, AWP said, after 1% organic growth in the second quarter. Over nine months, the division's sales were 26.39 billion euros, down 2% organically.

The company said business grew well in the United States, Europe and Japan. Selective Retailing, led by Sephora, rose 8% organically in the quarter, and Wines and Spirits grew 6%, according to AWP; the release said Hennessy cognac saw good momentum in Asia. Perfumes and Cosmetics edged up 1%. The release also noted a new Dior flagship in Osaka, opened in May.

For the nine months, group revenue was 57.15 billion euros, down 2% on a reported basis because of currency moves but up 2% organically, according to FashionUnited.

LVMH shares closed up 1.2% at 384.50 euros in Paris on Oct. 12, AWP reported. Monochrome Watches said the figures came after that close and that the stock had fallen about 40% since the start of the year.

What It Means for the Watch Trade in Asia

The LVMH figures fit a broader picture in which buyers are still spending on jewelry and top-end pieces while entry-level and aspirational purchases slow, particularly in mainland China. Swiss watch shipments to Hong Kong held up better than those to the mainland in the latest industry data, as Capital Times reported when Swiss watch exports rose 11.7% in September.

For Hong Kong-listed jewelry and watch retailers, LVMH's results suggest the strongest demand is concentrated in branded jewelry and high-ticket collections rather than in volume watch sales. LVMH's own commentary on China, its weakest major market in the quarter, offered no sign of a turn.

The group gives no separate figures for its watch brands, so the clearest signal from the quarter is the gap between divisions: 6% organic growth in Watches and Jewelry against a 5% decline in Fashion and Leather Goods, a spread of 11 percentage points.