LVMH's group revenue grew 3% organically year-over-year in Q2 2026. Excluding the impact of conflict in the Middle East, the company said growth would have been 4%. Within that, the Watches & Jewelry division grew 11% — the fastest of any of the group's business divisions, and an acceleration from 7% growth in Q1.
One distinction needs to be made clear up front. What accelerated in Q2 was revenue growth — operating profit and margin aren't disclosed on a standalone quarterly basis. The profitability improvement that can actually be confirmed is a first-half figure. So the more accurate way to describe this earnings round is "Q2 revenue growth accelerated, and H1 margin rebounded" rather than "Q2 margin rebounded."
Another important distinction: Tiffany and the Watches & Jewelry division as a whole aren't the same thing. LVMH credited both Tiffany and Bulgari as the maisons driving this growth. Tiffany's overhaul is clearly an important part of the story, but the division-wide rebound can't be explained by one brand's performance alone.
Tiffany Isn't the Only Name in Watches & Jewelry
LVMH's Watches & Jewelry division includes Tiffany as well as Bulgari, TAG Heuer, Hublot, Zenith, Chaumet, and Fred, among others. The company discloses the division's total revenue and profit from recurring operations, but not each maison's individually.
So it would be wrong to attribute the division's profitability decline solely to Tiffany's overhaul costs, or to credit 2026's growth to Tiffany alone. In its 2025 results, LVMH cited Tiffany's store renovations and stronger iconic lines alongside Bulgari's record performance and TAG Heuer's Formula 1 marketing push. In H1 2026 too, the company named both Tiffany and Bulgari as the key growth drivers.
That said, recent management commentary makes clear Tiffany's transformation is a significant part of the division's recovery. Tiffany has been reinforcing iconic lines like HardWear, Knot, and Bird on a Rock, opening larger and more elevated stores, and shifting away from its silver-led, accessible-jewelry image toward a maison with a heavier mix of gold and high jewelry. In H1 2026, the HardWear and Knot collections reportedly grew about 75% and 50%, respectively.
2023-2025: Revenue Fell 3.8%, But Profit Fell About 30%
In millions of euros
| Year | Revenue | YoY | Profit from Recurring Operations | YoY | Operating Margin |
|---|
| 2023 | €10,902M | N/A | €2,162M | N/A | 19.8% |
| 2024 | €10,577M | -3.0% | €1,546M | -28.5% | 14.6% |
| 2025 | €10,486M | -0.9% | €1,514M | -2.1% | 14.4% |
Source: LVMH annual results. 2025 revenue declined on a reported basis but grew 3% organically.
From 2023 to 2025, Watches & Jewelry revenue fell 3.8%, from €10,902 million to €10,486 million. On revenue alone, that's not a steep decline. But profit from recurring operations dropped roughly 30%, from €2,162 million to €1,514 million, and the operating margin fell 5.4 percentage points, from 19.8% to 14.4%.
The profitability decline was steepest in 2024 specifically: revenue fell 3.0%, but profit from recurring operations fell 28.5%. LVMH pointed to unfavorable currency effects along with heavier spending on store renovations, marketing, and brand investment as the drivers of that year's margin pressure.
It would still be a stretch to label all of that spending as Tiffany's overhaul costs. The division spans multiple maisons, and LVMH doesn't disclose costs or profit by maison. Tiffany's large-scale store renovation program was very likely a significant driver of that cost pressure, but there's no way to confirm what share of the division's profit decline it actually accounts for.
In 2025, revenue fell 0.9% on a reported basis but grew 3% organically, stripping out currency and scope-of-consolidation effects. Even so, profit from recurring operations still fell 2.1%, and the operating margin edged down further to 14.4%. It was a period when the top line had started to recover, but that recovery hadn't yet reached profit.
H1 2026: Q2 Revenue Growth Accelerates, H1 Margin Rebounds
| Period | Revenue | Organic Growth | Profit from Recurring Operations | YoY | Operating Margin |
|---|
| H1 2025 | ~€5,085M | N/A | ~€762M | N/A | ~15.0% |
| H1 2026 | €5,225M | +9% | €831M | +9% | 15.9% |
| Q2 2026 alone | Not disclosed | +11% | Not disclosed | Not disclosed | Not disclosed |
Source: LVMH H1 2026 results. Prior-year H1 figures are based on the disclosed change and comparison data.
H1 2026 Watches & Jewelry revenue came to €5,225 million, up 9% organically. On a reported basis too, that's up from roughly €5,085 million a year earlier. Q2's organic growth rate was 11%, up from 7% in Q1.
Profit from recurring operations was €831 million, up 9%. The operating margin improved 0.9 percentage points, from roughly 15.0% a year earlier to 15.9%. That matters because it's the first time the profitability trend has turned since the margin declined every year from 2023 through 2025.
Still, that's 3.9 percentage points below 2023's 19.8%. It's too early to call H1 2026's improvement a full recovery. What can be said right now is closer to a possible trough and an early rebound signal.
Is Tiffany's Overhaul Translating Into Results?
In discussing H1 2026 results, LVMH management repeatedly emphasized Tiffany's iconic lines, high jewelry, and store renovation results. The HardWear and Knot collections were cited as growing roughly 75% and 50%, respectively, and the new store concept that debuted at the New York flagship has since spread to Milan, Tokyo, and other cities.
That said, management's comment that "60% of Tiffany's business has been transformed, while the remaining 40% legacy business is still negative" needs to be handled carefully. It isn't clear from the public summary whether "negative" refers to revenue growth, profitability, or the relative underperformance of the not-yet-transformed business. It shouldn't be read as "the legacy business is running a loss."
What can be confirmed with confidence is management's statement that roughly 40% of Tiffany's store network has been renovated — which, by the same token, means about 60% of stores have yet to make the switch to the new concept. Since renovation is proceeding gradually, cost and payoff are likely to keep showing up side by side for a while yet.
So it's premature to neatly split this into "2024-2025 profitability decline = overhaul cost" and "2026 rebound = payback on that investment." Results are expanding at some stores and in some iconic lines, but with renovation still incomplete across the network, it's more accurate to see this as a period where investment and payoff overlap.
Tiffany Korea: Revenue Up 28.4% From 2023 to 2025
| Year | Revenue | YoY | Operating Profit | YoY | Operating Margin |
|---|
| 2023 | KRW 350.9B | N/A | KRW 21.2B | N/A | 6.0% |
| 2024 | KRW 377.9B | +7.7% | KRW 21.6B | +1.7% | 5.7% |
| 2025 | KRW 450.4B | +19.2% | KRW 26.0B | +20.7% | 5.8% |
Source: Tiffany Korea's disclosed financials and corporate-data services drawing on NICE Information Service data. Figures are rounded.
Tiffany Korea is the sales and distribution entity that imports Tiffany products and runs its stores in Korea. Unlike LVMH globally, it doesn't report quarterly — its results surface only through its annual audited financial statements.
Revenue of KRW 350.9 billion in 2023 rose to KRW 377.9 billion in 2024, then to KRW 450.4 billion in 2025 — a cumulative increase of about 28.4% over that span. Because this compares three fiscal years but only two years actually elapsed, "up 28% over two years" (rather than "over three years") is the more accurate way to put it.
That works out to a compound annual growth rate of about 13.4%. 2025's revenue growth of 19.2% was notably higher than 2024's 7.7%. Operating profit also rose 22.6%, from KRW 21.2 billion to KRW 26.0 billion.
The operating margin, though, slipped from 6.0% in 2023 to 5.7% in 2024 and only edged back up to 5.8% in 2025. 2025's operating profit growth did slightly outpace revenue growth, but the margin still hasn't climbed back to its 2023 level.
Recalculated, operating profit growth was about 1.7% in 2024 and about 20.7% in 2025. Using the underlying disclosed figures rather than these rounded KRW amounts could shift the decimals slightly.
Why the Global Division's Margin and Tiffany Korea's Margin Can't Be Compared Directly
LVMH's Watches & Jewelry operating margin and Tiffany Korea's operating margin aren't even measuring the same thing to begin with.
The global division's figures fold in Bulgari, TAG Heuer, Hublot, Zenith, Chaumet, and Fred alongside Tiffany. They also carry the profit and cost of brand IP, product development, manufacturing, global marketing, and headquarters functions.
Tiffany Korea, by contrast, only handles local sales and distribution. Its profitability moves with the price it pays headquarters or affiliates for product, transfer-pricing terms, domestic rent and labor costs, and new-store and renovation spending. That's why Tiffany Korea's margin sitting in the mid-single digits, well below the global division's mid-teens-to-high-teens range, can't be read as the Korean business being any less competitive.
The Korean entity's revenue growth and the global division's profitability decline can both be true at the same time. But that's no basis for concluding "Korea succeeded at the global overhaul first" or "Korean revenue drove the global division's rebound."
What can be confirmed is that the two trends simply exist side by side: LVMH's Watches & Jewelry division went through profitability pressure from 2023 to 2025 before rebounding in H1 2026, and Tiffany Korea grew both revenue and operating profit over that same 2023-2025 stretch.
The 2027 Cheongdam Flagship: A Further Lift for Korea?
Tiffany is preparing a new flagship store in Seoul's Cheongdam neighborhood, reportedly targeting a 2027 opening. LVMH is also expanding Louis Vuitton's and Dior's Cheongdam footholds, and Bulgari is said to be weighing its first Korean flagship. That's the backdrop for the reading that LVMH sees Korea as a strategic market that can offset uncertainty in China and the U.S.
There are also signs that Tiffany Korea ran public hiring for the Cheongdam flagship in 2026. A hiring posting alone, though, can't confirm an exact opening date or store size. The safest way to put it, for now, is that a 2027 opening has been reported and preparations appear to be underway.
The new flagship could end up being less a simple store than the local showcase for Tiffany's elevation strategy. Leaning harder into high jewelry, top-client services, exhibitions, and brand experience could move not just revenue but product mix and average ticket size too.
On the other side, construction, interior fit-out, staffing, and marketing costs will land first, in the early going. Even if Tiffany Korea's revenue keeps growing, that's no guarantee its operating margin improves right away. Judging the Cheongdam flagship's impact will mean watching not just post-opening revenue growth but also the operating margin, inventory, and how rent and depreciation move.
The Open Question: When Does Store Overhaul Flip From Cost to Payoff?
The most important shift in this earnings round is that Q2 2026 Watches & Jewelry revenue growth rose to 11% and the H1 operating margin rebounded to 15.9%. Iconic lines and high jewelry at Tiffany and Bulgari drove the growth, and Tiffany's renovated stores have started to show results.
Plenty remains unconfirmed, though. Because LVMH doesn't break out revenue and profit by maison, there's no way to calculate exactly how much Tiffany contributed to the division's growth and profit improvement. The revenue growth rate at renovated stores, how long it takes to pay back that investment, and the profitability gap versus unrenovated stores are all undisclosed as well.
In Korea, too, Tiffany Korea's revenue mix by category isn't disclosed. It's hard to break down, from public data alone, how much of 2025's 19.2% growth came from iconic lines like HardWear and Knot, high jewelry, bridal, watches, price increases, new stores, or tourist demand.
So the thing to watch in the next earnings round isn't the revenue growth rate alone. It's whether the Watches & Jewelry division's H1 margin rebound continues into H2, how far Tiffany's store renovation program advances, and — in Korea — whether revenue growth and profitability improve together once the Cheongdam flagship opens.
✦RIT's Insights
What RIT found most important in these numbers is the margin curve, not the revenue curve. From 2023 to 2025, LVMH's Watches & Jewelry revenue fell 3.8%, but profit from recurring operations fell about 30%, and the operating margin dropped 5.4 percentage points, from 19.8% to 14.4%. That's a profitability deterioration easy to miss if you're only looking at revenue.
That said, none of it should be pinned entirely on Tiffany's overhaul costs. The division spans multiple maisons, and currency, marketing, store investment, and product mix were all at work together. Without maison-level profit and loss disclosed, all that can be confirmed is that Tiffany's renovation and elevation investment was underway, and that the division's overall profitability fell sharply over that period.
2026 is when the trend first turned. Q2 Watches & Jewelry revenue growth accelerated to 11%, and the H1 operating margin improved 0.9 percentage points to 15.9%. HardWear and Knot, Tiffany's high jewelry, and Bulgari's iconic lines drove that growth. But it's still 3.9 percentage points below the 2023 operating margin. Right now, this looks less like the overhaul reaching completion and more like a middle stretch where investment and payoff are overlapping.
The Korean entity is worth watching for a different reason. Tiffany Korea's revenue grew 28.4%, from KRW 350.9 billion in 2023 to KRW 450.4 billion in 2025. That's a cumulative figure over two years, not three. And it's hard to link the Korean sales entity's growth directly to the global division's profitability rebound — Tiffany Korea has its own set of variables, from purchase terms and transfer pricing to new stores and tourist demand.
RIT will be tracking four things going forward. First, whether the Watches & Jewelry division's operating margin keeps improving in H2 2026. Second, whether Tiffany's store renovation ratio and iconic-line growth keep climbing. Third, whether Tiffany Korea sustains 2025's double-digit revenue growth. Fourth, whether the 2027 Cheongdam flagship contributes to margin improvement, not just top-line growth.
For anyone handling jewelry brands at a department store or duty-free operator, revenue growth alone isn't enough to go on either. The same revenue increase means something different for a brand's negotiating leverage depending on whether it's still front-loading costs into new stores and renovations, or already recouping that investment through a more elevated product mix and higher average ticket size.
Tiffany's 2026 rebound isn't evidence the overhaul is finished. It's an early signal that the stores and product strategy that absorbed the upfront cost are starting to convert into revenue and profit. For that signal to become a confirmed trend, it'll take watching how much closer the operating margin — having recovered to 15.9% in H1 — gets to its 2023 level.
