LVMH Reports First Quarterly Organic Growth of the Year, Signaling Potential Turning Point for Luxury Sector
The world’s largest luxury group, LVMH, has just announced its first quarterly organic growth of the year, and it’s causing quite a stir in the industry. The company’s third quarter results for 2025 show a 1% increase in organic growth, surpassing analyst expectations and suggesting a possible stabilization in the luxury market.
Strong Demand in Asia and Selective Retailing Division Drive Growth
The positive result was largely driven by a rebound in the crucial Asian market, with revenue in Asia (excluding Japan) seeing a noticeable improvement. This was largely due to a resurgence in demand from Chinese consumers, marking a significant shift as China’s economic uncertainty had previously been a major drag on the luxury sector. Additionally, the Selective Retailing division, which includes popular beauty retailer Sephora, saw a strong 7% increase in organic growth.
Fashion & Leather Goods Division Continues to Face Challenges
While the overall results are promising, the core Fashion & Leather Goods division, home to iconic brands like Louis Vuitton and Dior, continues to struggle. The division saw a 2% decline in organic growth in Q3, although this was an improvement from the previous quarter’s 9% drop. Despite these challenges, LVMH remains confident, with new creative directors named at Dior, Celine, Givenchy, and Fendi.
Investing in Brands and Leveraging Diverse Portfolio
Cécile Cabanis, LVMH’s chief financial officer, remains positive about the company’s future, stating, “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.” LVMH’s strategy remains focused on enhancing brand desirability and leveraging its diverse portfolio to navigate the evolving global market. With this approach, the luxury giant is well-positioned to weather any challenges that may arise in the future.
