# Molly Tea Dispute Weighed on LVMH Fashion and Leather Goods Organic Sales, Down 5%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/32753
Published: 2026-10-15T20:40:49.000Z
Updated: 2026-10-15T20:40:49.000Z
Section: Business

> LVMH Chief Financial Officer Cecile Cabanis called the effect difficult to quantify. The division posted €8.25 billion in third-quarter revenue, down from €8.50 billion a year earlier.

LVMH Chief Financial Officer Cecile Cabanis said the Molly Tea trademark dispute weighed on its fashion and leather goods division, which includes Louis Vuitton, early in the third quarter, when organic sales fell 5% year over year.

On the Oct. 12 earnings call, Cabanis called the effect “very difficult to size.” She said it was probably fair to conclude the dispute had a negative impact at least at the start of the quarter, without assigning a figure to its contribution. The division’s organic sales had risen 1% in the second quarter before declining in the third.

Luca Solca, Bernstein’s managing director of luxury goods, estimated that the backlash accounted for two to three percentage points of the drop. “Without it, for the avoidance of doubt, we could have had -2-3% instead of -5%,” he said.

The division posted €8.25 billion in third-quarter revenue, compared with €8.50 billion a year earlier. Across LVMH, Asia excluding Japan shifted from 4% organic sales growth in the second quarter to a 5% decline in the third. That region accounted for 27% of LVMH revenue, while U.S. sales grew 5% in the quarter.

Cabanis said spending by Chinese customers on the group’s fashion and leather goods brands fell by a percentage in the mid-teens year over year. She said shoppers cut spending by double digits at home and by a mid-single-digit percentage while abroad. Cabanis identified Chinese customers as the main driver of the division’s slowdown, but said the dispute would not stop LVMH from investing in China.

Louis Vuitton sued Molly Tea in May 2025, alleging that the Chinese milk tea chain’s four-petal flower logo infringed seven registered trademarks. On June 29, a Chinese court ruled in Louis Vuitton’s favor, directing Molly Tea to discontinue the design and pay 10.3 million yuan ($1.5 million) in damages. The ruling drew criticism on Chinese social media. Molly Tea founder Zhang Bocheng said he would appeal.