Following today’s release of LVMH’s figures for the three months ending 30 September 2025; Chloe Tedford-Jones, apparel analyst at GlobalData, a leading data and analytics company, offers her view: “LVMH’s latest quarterly results suggest that while the group continued to face declining sales amid the broader luxury slowdown, the pace of decline began to ease. Total group revenue fell 4.2% to €18.3 bn in Q3, though a 1% organic growth shows a modest recovery when excluding currency impacts. Revenue for the nine months to September 2025 fell 4.4% to €58.1bn, with organic revenue falling 4%, as the impact of a weak first half offset the early signs of recovery seen in the third quarter. Despite persistent currency headwinds, LVMH remains cautiously optimistic, pointing to early signs of stabilization as Selective Retailing and other divisions offset declines in the Fashion and Leather Goods division.
“The US was the group’s best performing region, reporting organic growth of 3%, which can be attributed to a stable local demand, particularly among ultra wealthy consumers, who remain relatively insulated from economic and geopolitical uncertainty. After a subdued first half, demand in Asia (excl. Japan) began to recover in Q3, evidenced by a rise of 2% in organic revenue, driven by returning consumer confidence, particularly in China where the economy has begun to recover. Europe’s organic revenue continued to decline, falling 2%, hindered by low consumer sentiment across the region due to geopolitical and economic uncertainty and impacted by a decline in tourist spending. Japan was the group’s worst performing region, with organic revenue falling 13%, though it was against outstandingly positive comparatives, as the weak yen attracted many tourists last year. As tourists shift focus to other destinations such as Hong Kong and Seoul, local demand has also waned due to wage stagnation and rising inflation.
“The group’s largest division, Fashion and Leather Goods reported revenue declined 7.1% to €8.5bn, reflecting the continued strain on luxury fashion demand. Changes in creative leadership across the brands within this segment have yet to impact sales, as recent debut collections have only recently hit stores. New collections have been widely well received, with many critics and consumers praising the commercial appeal and creativity of Jonathan Anderson’s debut for Dior, which could support a stronger fourth quarter. Selective Retailing was LVMH’s best-performing division, delivering a 1.7% reported revenue growth, driven largely by the continued demand for Sephora’s wide product offering, including the high-profile launch of Rhode. DFS also saw improved sales due to cost-cutting measures and improved tourism across Asia. The group’s Perfumes & Cosmetics division and Watches and Jewelry division both saw reported revenue decline by 2.7% and 2.8% respectively, hindered by currency fluctuations, as organic growth rose 2% for both divisions. The group’s Wines and Spirits division reported revenue declined 4.0% to €1.3bn, as weak demand for cognac continued under the pressure from trade tensions in key markets of the US and China.”
