LVMH, the French luxury powerhouse behind Louis Vuitton, Dior, and Moët & Chandon, stands as a global benchmark for the high-end goods industry. As Europe’s second-largest company after semiconductor leader ASML, the group’s performance often sets the tone for the entire luxury sector. Following the release of its latest financial results, investors might be wondering: does LVMH’s recent rebound signal a new phase of growth? And what challenges could still weigh on its momentum? Here’s a closer look.
After two consecutive quarters of contraction, LVMH finally returned to growth in the third quarter of 2025, posting a 1% increase in sales to €18.28 billion ($21.17 billion). The rebound comes after a 4% decline in the previous quarter and offers a much-needed sign of stabilization for the world’s largest luxury goods group — and, by extension, for a sector that has faced persistent headwinds since early 2024.
The turnaround was largely driven by a gradual recovery in China, where sales turned positive again for the first time this year. According to Chief Financial Officer Cécile Cabanis, mainland Chinese consumers showed renewed appetite for high-end fashion and experiences, such as Louis Vuitton’s flagship ship-shaped boutique in Shanghai. While spending by travelling Chinese shoppers remained below last year’s levels, the domestic momentum helped offset earlier weakness and restored confidence in Asia’s contribution to growth.
Elsewhere, demand in Europe and the United States remained “solid,” reflecting resilient local consumption despite a more cautious global backdrop. LVMH noted a “noticeable” improvement in overall trends across Asia excluding Japan, underscoring a broader regional stabilization after months of uneven demand.
This modest yet symbolic growth marks LVMH’s first positive quarter of 2025 and a potential inflection point for the luxury industry. The group’s diverse portfolio — spanning fashion, wines and spirits, perfumes, watches, and retail — continues to act as a barometer for global luxury trends. After a challenging start to the year marked by fading demand in China and uncertainty around U.S. tariffs, the third-quarter uptick suggests that the worst of the slowdown may be behind the sector, even if the path to sustained recovery remains gradual.
After returning to modest growth in the third quarter of 2025, LVMH remains under pressure from several structural and cyclical challenges that could weigh on its performance into 2026. While demand has stabilized in some key regions, the group continues to navigate weaker appetite for high-end products, volatile economic conditions, and rising operational costs.
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