Cosmetics Sector (Japan): Implications of LVMH's 3Q sales trends

On the 12th (France time), LVMH (covering analyst: Chiara Battistini) announced its 3Q FY2026 sales results. We believe the takeaway for Japanese cosmetics companies is mixed, with both positives and concerns. In Perfumes & Cosmetics, 3Q sales were +1% YoY on a like-for-like (LFL) basis, turning positive from -1% in 2Q. In the briefing, the company commented that Asia and Japan are showing solid momentum in this segment, suggesting that demand conditions were likely resilient for Japanese cosmetics companies as well. Meanwhile, in Selective Retailing, 3Q sales were +8% YoY (LFL), accelerating from +6% in 2Q. In the briefing, management emphasized strong sales at Sephora, which belongs to this segment. This may indicate that sales momentum for Shiseido (4911) and Kose (4922) through the same channel also improved. On the other hand, LVMH pointed to weakening consumption in China. For Asia ex-Japan, 3Q sales (all segments) turned downward at -5% YoY (vs. +4% in 2Q), and the company said