LVMH Reports First Sales Growth of 2025 as China Market Rebounds
Paris, October 15, 2025 — Global luxury leader LVMH Moët Hennessy Louis Vuitton (LVMH) reported a 1% year-on-year sales increase in the third quarter, buoyed by improving demand in mainland China. The results mark the group’s first quarterly growth of the year, signaling early signs of recovery in a luxury sector that has faced months of sluggish demand and macroeconomic uncertainty.
LVMH’s total sales reached €18.28 billion ($21.17 billion) in the July-to-September period, surpassing analyst expectations and delivering a “strong beat” across multiple business divisions, according to HSBC and Bernstein.
The announcement sparked a 7.5% rise in LVMH’s U.S.-listed shares, while shares in Paris have climbed 13% since July, reflecting renewed optimism from investors toward the broader luxury market.
Mainland China Drives Return to Growth
The company credited renewed spending in China as the key catalyst for the third-quarter improvement.
“Mainland China turned positive in Q3,” said Cecile Cabanis, LVMH’s Chief Financial Officer, during an analyst call. “While headwinds remain in the form of currency fluctuations and economic uncertainty, we are confident in the strength of our brands and their new creative directions.”
The Asia region excluding Japan — which includes China, one of LVMH’s most critical markets — showed a “noticeable improvement” nine months into 2025, according to the company’s statement.
LVMH’s CFO noted that while sustained recovery will “take time,” the company is seeing gradual sequential improvement across core markets.
Strong Performance Despite Sector Challenges
LVMH’s performance comes amid persistent challenges in the global luxury goods sector, including:
- Weaker demand from middle-income consumers affected by inflation and price hikes.
- Ongoing U.S. tariffs under the Trump administration.
- China’s real estate slowdown dampening consumer confidence.
- Rising gold and silver prices, which have increased jewelry production costs.
Despite these hurdles, LVMH has outperformed many of its peers, demonstrating the resilience of its diversified portfolio spanning fashion, jewelry, wines and spirits, beauty, and retail.
Fashion and Leather Goods Show Signs of Stabilization
The fashion and leather goods division — which includes Louis Vuitton and Christian Dior, and contributes more than two-thirds of the group’s profits — saw a 2% decline year-over-year.
While still down, the drop represents a major improvement from the 9% fall recorded in Q2 2025, suggesting that the group’s pricing strategy and creative reinvention are beginning to pay off.
Analysts had expected the segment to decline 4%, but LVMH’s actual results beat forecasts, driven by strong consumer interest in its core handbag and accessory lines as well as the success of new creative directors across its fashion houses.
Renewed Optimism in the Luxury Sector
The latest results from the world’s largest luxury goods conglomerate, controlled by billionaire Bernard Arnault, are being viewed as a turning point for the sector.
Bernstein analysts said, “The results indicate a combination of self-help measures and a slightly more positive Chinese demand environment, possibly on a U-shaped recovery trajectory.”
Similarly, Morgan Stanley has noted a “burst of creativity” among major luxury brands, suggesting that the worst of the slowdown may be over.
The shift toward more affordable product lines and an increased focus on younger, value-conscious consumers has also started to attract a broader demographic back to luxury retail.
Leadership Changes Fuel Fresh Creativity
In recent months, LVMH CEO Bernard Arnault has reshuffled leadership positions and creative teams across the group’s fashion houses — including Dior, Celine, Loewe, and Fendi — to strengthen brand identity and innovation amid changing market dynamics.
This “creative reset,” as described by industry analysts, has positioned LVMH for sustainable growth as it adapts to evolving consumer preferences and regional spending patterns.
LVMH’s Market Outlook and Industry Position
With €18.28 billion in quarterly sales, LVMH continues to hold a dominant position in the €400-billion global luxury goods industry, ahead of rivals Hermès, Kering, Richemont, Prada, and Burberry.
While its fashion and leather division remains under pressure, jewelry, cosmetics, and selective retail — including Tiffany & Co., Sephora, and Moët & Chandon — are helping to offset declines.
Following Tuesday’s report, LVMH regained its position as France’s most valuable publicly traded company, after briefly losing that title to Hermès earlier this year.
Key Financial Highlights
| Metric | Q3 2025 | Q2 2025 | YoY Change |
|---|---|---|---|
| Total Sales | €18.28 billion | €18.09 billion | +1% |
| Fashion & Leather Goods | €12.1 billion (approx.) | €12.3 billion | -2% |
| Asia (ex-Japan) | Positive Growth | Negative | Improving |
| U.S. Shares | Up 7.5% | — | — |
| Paris-listed Shares | +13% since July | — | — |
Conclusion: LVMH Signals Early Signs of a Sector Recovery
LVMH’s return to growth in Q3 2025 underscores a gradual recovery in global luxury demand — led by a rebound in China, strong creative renewal, and continued brand strength across its divisions.
As the group navigates currency headwinds and economic uncertainty, investors appear to remain bullish, viewing LVMH as the bellwether of global luxury resilience.
Leave a Reply