In the first half of 2026, LVMH’s Wines & Spirits division raised its operating margin from 20.3% to 22.4%. Profit from recurring operations climbed 11% to €582 million. Against a group that posted only 2% organic growth overall, and with Fashion & Leather Goods still under pressure, the division delivered the clearest profit expansion of any business group.
The contrast with the first half of 2025 is stark. Then, organic revenue fell 7% and profit dropped 33%. The recovery is real. It is not broad.
Champagne and wines grew 7% organically. Cognac and spirits grew 3%. Within those figures the differences sharpen further. Hennessy maintained clear positive momentum in China that began during Chinese New Year and continued through the half. In the United States, cognac demand remained soft. Prestige cuvées outperformed in champagne, particularly in Europe and Japan. Volume growth drove most of the 5% organic increase for the division as a whole. Cognac volumes rose from 37.1 million to 38.4 million bottles. Other spirits volumes moved from 9.6 million to 10.4 million.
The numbers show recovery by market, by price band, and by occasion. They do not show a uniform return of demand.
Reported revenue for the division was essentially flat at €2.6 billion, held back by a negative currency impact of around 5%. Organic growth reached 5% and was predominantly volume-driven, according to management. Some mix improvement appeared in champagne through the stronger performance of prestige cuvées. The margin expansion therefore reflects operating leverage from recovering volumes, disciplined cost management built over the previous two years, and limited structural gains. It does not signal a decisive return of pricing power.
At the same time the maisons tested adjacent occasions. Hennessy launched a V.S. ready-to-serve cocktail range in the United States. Chandon Spritz, a lower-alcohol expression, showed promising early results. These moves remain limited. They suggest luxury houses are testing whether new formats can expand drinking occasions without diluting the core premium position. The evidence is still too narrow to claim a broader strategic shift.
The wider industry context matters. For two years global spirits faced the same set of pressures: elevated inventories, softer demand, and macroeconomic uncertainty. Those pressures are now easing, yet they are easing at different speeds across regions, products, and consumption occasions. What is emerging is not a uniform recovery cycle. It is a differentiation cycle. In the previous phase, most players declined together. In the next phase, they will not rise together. Which brands recover, why they recover, and where the recovery occurs will matter more than the simple fact of recovery itself.
The numbers from LVMH’s first half make that selectivity measurable for the first time in two years. The recovery is real. It is uneven. And that selectivity may prove more important than the recovery itself.
