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LVMH navigates revenue dip amid rising local demand

22:17, October 15

LVMH reported a 4% drop in revenue for the third quarter of 2025 but offered a silver lining for the luxury market: organic sales grew 1%, surpassing analyst expectations, according to WWD. Overall revenue for July through September totaled €18.3 billion.

The company’s core fashion and leather goods segment fell 2%, better than the predicted 4% drop. LVMH attributed the resilience to “strong local demand.” New Dior collections under Jonathan Anderson received “very positive reviews,” with two new flagship stores opening in New York and Beverly Hills. Meanwhile, Fendi announced Maria Grazia Chiuri as its new creative director, with her first Fall 2026 collection set to debut in Milan next February.

The watches and jewelry segment exceeded expectations with 2% organic growth, while perfumes and cosmetics rose 2%, in line with forecasts. The wines and spirits division, undergoing restructuring, surpassed consensus projections, growing 1% instead of the anticipated 4% decline. Selective retail saw a 7% increase.

Growth was observed across all business groups and regions except Europe, where organic sales fell 2% due to weaker tourist spending and currency fluctuations. The U.S. posted 3% organic growth, Asia-Pacific (excluding Japan) rose 2%, while Japan saw a 13% decline—an improvement from the 28% drop in Q2.

These results have boosted investor confidence following a stock slump earlier this year, driven by weak demand, a stronger euro, and potential U.S. tariffs. Some analysts have raised their stock forecasts, with LVMH shares currently about 14% below January levels.

In a recent note, Bernstein called LVMH the “top idea” for Q4. “LVMH remains the first choice for new luxury consumers and many potential investors. Many challenges in the luxury sector could turn around next year. LVMH has everything it needs to succeed,” analysts said.


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