At FinancialMediaGuide, our analysts note that LVMH – the world’s leading luxury conglomerate – reported a 1% increase in sales in the third quarter, marking its first quarterly growth this year. The recovery was driven primarily by stronger demand in China, offering a glimmer of hope to a luxury sector still navigating a prolonged slowdown.
According to the company, Asian markets excluding Japan – where China plays a dominant role – showed “noticeable improvement.” “Mainland China turned positive in Q3,” said Chief Financial Officer Cécile Cabanis, adding that full financial recovery will be gradual.
However, at FinancialMediaGuide, we emphasize that LVMH still faces significant challenges – from unfavorable currency movements to macroeconomic uncertainty across key regions. Still, the company remains confident in its new creative direction across brands, seeing it as the foundation for sustainable growth.
Analysts at Bernstein described the results as “a strong surprise,” highlighting a mix of internal efficiencies and improving Chinese demand, which they believe is following a U-shaped recovery pattern.
Sales in LVMH’s core fashion and leather goods division – home to Louis Vuitton and Dior – fell just 2% year-on-year, outperforming the HSBC consensus that expected a 4% decline.
Total group sales, under the control of Bernard Arnault, rose 1% to €18.28 billion ($21.17 billion), beating market forecasts.
At FinancialMediaGuide, we note that despite the sector’s downturn following the post-pandemic boom, the luxury market is showing signs of stabilization. Recent price hikes, which had fueled profits for brands like Louis Vuitton and Dior, are now dampening demand among less affluent buyers. Meanwhile, U.S. tariffs, China’s real estate slump, and rising gold and silver costs continue to pressure production and sales.
Still, optimism is returning. Analysts at Morgan Stanley suggest that a “burst of creativity” from new designers and a push toward more accessible product lines could signal the end of the slump.
In recent months, LVMH has undertaken several executive and creative reshuffles, with Arnault reassigning key figures across Dior, Celine, Loewe, and Fendi to adapt to a shifting global market.
LVMH shares have risen 13% since July, allowing the company to reclaim its position as France’s most valuable firm, surpassing Hermès once again.
We at Financial Media Guide believe that LVMH’s rebound reflects more than just a Chinese recovery – it signals the beginning of a structural revival in the luxury sector. Investors are regaining confidence, as innovation and artistry once again drive the industry forward.
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