LVMH Fashion Division Beats Expectations in Q3 as Asia Sales Improve
Key Takeaways
- Analysts see signs of recovery; Bernstein named LVMH its “best idea” for Q4 amid renewed investor optimism.
- Q3 organic revenue up 1%, beating expectations for a 1% decline.
- Fashion & Leather Goods division down 2%, outperforming forecasts and showing “good resilience with local customers.”
- Wines & Spirits up 1%, Watches & Jewelry up 2%, and Selective Retailing up 7% — all ahead of estimates.
- Asia-Pacific and U.S. sales improved, while Europe declined due to weaker tourism and currency effects.
- Dior’s new creative director Jonathan Anderson and Fendi’s appointment of Maria Grazia Chiuri were key brand milestones.
LVMH Moët Hennessy Louis Vuitton reported third-quarter revenues that beat market expectations, suggesting the world’s largest luxury group may be turning a corner after a year of sluggish demand.
Group revenues totaled €18.3 billion in the three months ending September 30, up 1 percent organically, surpassing analyst forecasts for a 1 percent decline. The modest growth marks LVMH’s first positive organic performance this year and comes as encouraging news for an industry weighed down by weak consumer sentiment and macroeconomic uncertainty.
The company’s Fashion & Leather Goods division — its largest and most closely watched segment — posted a 2 percent decline, versus expectations for a 4 percent drop. LVMH cited “good resilience with local customers” and strong creative momentum across key maisons, including Dior, Loewe, and Louis Vuitton.
Fashion & Leather Goods Highlights
LVMH’s largest division showed renewed strength in the third quarter, supported by local demand and creative energy across its portfolio.
- Louis Vuitton: Continued to drive brand desirability through major initiatives, including the unveiling of La Beauté Louis Vuitton—a new makeup universe led by Dame Pat McGrath—and the debut of The Louis in Shanghai, a museum-like retail space designed as a cruise ship.
- Christian Dior: Under new creative director Jonathan Anderson, Dior introduced a modern evolution of its “New Look.” His first men’s and women’s collections were met with critical acclaim.
- Fendi: Marked a new era with Maria Grazia Chiuri’s appointment as Chief Creative Officer, following Silvia Venturini Fendi’s transition to Honorary President.
- Loro Piana: Reinforced its craftsmanship leadership through partnerships and a Milan showcase at Palazzo Citterio.
- New Creative Leadership: Debuts from Michael Rider at Celine, Jack McCollough and Lazaro Hernandez at Loewe, and Sarah Burton at Givenchy all received strong critical response.
Across other categories, Watches & Jewelry grew 2 percent organically, led by robust performances from Bvlgari, Tiffany & Co., and TAG Heuer. The Perfumes & Cosmetics division also rose 2 percent, buoyed by new Dior launches and continued dominance of Sauvage, the world’s top-selling men’s fragrance. Wines & Spirits, despite broader market pressures, outperformed forecasts with a 1 percent increase.
Selective Retailing delivered a standout quarter, up 7 percent organically. Sephora extended its global leadership with strong market share gains and record-breaking brand launches such as Rhode, while DFS benefited from a rebound in tourism across Macao and Hong Kong.
Regionally, the Asia-Pacific region led improvements, up 2 percent excluding Japan, while U.S. sales gained 3 percent. Japan declined 13 percent, a significant improvement from a 28 percent drop in Q2. Europe was the only region to contract, down 2 percent amid weaker tourist spending and unfavorable currency movements.
The company said it remains “confident” despite global volatility, citing brand strength, product innovation, and disciplined execution.
LVMH shares have climbed roughly 14 percent from their June low, reflecting renewed investor optimism. Analysts at Bernstein recently named LVMH their “best idea” for Q4, writing that “many of the headwinds facing luxury may reverse in the coming year.”
With Kering and Hermès International set to report results later this month, LVMH’s Q3 performance may serve as an early indicator of stabilization across the luxury sector.