LVMH Returns to Growth as Luxury Slump Shows Signs of Easing

Summary

• LVMH reported its first quarterly organic growth of the year, up 1% in Q3 2025, signaling a stabilization in the luxury sector
• The crucial Fashion & Leather Goods division continues to lag, showing a 2% decline, though this was an improvement from the previous quarter
• Growth was driven by strong local demand in Asia (excluding Japan) and the Selective Retailing division, which is led by Sephora

LVMH, the world’s largest luxury group, has reported its first quarterly organic growth of the year, signaling a potential turning point for the beleaguered luxury sector.

The company logged a 1% organic growth in the third quarter of 2025, surpassing analyst forecasts and suggesting consumer demand may be stabilizing after a prolonged slump. Revenues for the parent company hit approximately $21.2 billion USD. The positive result, which caused LVMH shares to surge by over 13%, was driven by a rebound in the crucial Asian market. Revenue in Asia (excluding Japan) saw a noticeable improvement, largely due to a resurgence in demand from Chinese consumers. This marks a significant shift, as China’s economic uncertainty had been a major drag on the luxury sector.

However, the core Fashion & Leather Goods division—home to flagship brands like Louis Vuitton and Dior—continues to face challenges. While the division’s 2% organic decline in Q3 was an improvement from the previous quarter’s 9% drop, growth remains elusive. Despite these headwinds, other segments showed resilience: the Perfumes & Cosmetics and Watches & Jewelry divisions both saw slight organic growth, and the Selective Retailing group (led by Sephora) posted a strong 7% increase. Cécile Cabanis, LVMH’s chief financial officer was positive, telling analysts, “For us, it’s very clear in the cycle, as in all [downturns], we need to continue to make sure that we invest the right amount of focus and money in the brands.”

With new creative directors named at Dior, Celine, Givenchy and Fendi, LVMH remains confident, maintaining a strategy focused on enhancing brand desirability and leveraging its diverse portfolio to navigate the evolving global market.

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