The luxury titan LVMH has reignited optimism in the high-end goods sector after reporting better than expected Q3 sales, driven by improving consumer demand in mainland China. Shares of LVMH Moët Hennessy Louis Vuitton SE surged 12%, adding to its market capitalization.
According to RTÉ News, the group’s stock climbed as much as 13% in early trade, marking its best one-day gain in almost two years. European peers Hermès, Kering, Richemont, Burberry, and Moncler followed suit, with shares advancing between 5% and 7%.
Luxury Sector Rebounds on LVMH’s Stellar Results
The world’s largest luxury conglomerate reported its first quarter of growth in 2025, defying gloomy forecasts that had dogged the sector since the start of the year. Analysts at Bernstein described the performance as a good sign for continued recovery, while JPMorgan noted it sets the stage for a generally better luxury reporting season.
LVMH’s Q3 sales rose 1% year-over-year to an estimated €18.28 billion, compared to projections of flat or slightly negative results. The group’s fashion, spirits, and retail divisions all posted stronger-than-expected performance, with Louis Vuitton, Dior, and Sephora emerging as core growth drivers.
The China Effect: Renewed Demand and Creative Strategy
After months of concern over China’s property slowdown and cooling household spending, Chinese luxury demand finally turned a corner. Sales in the region climbed 2% in Q3, marking a rebound from earlier declines of more than 9% during the first half of the year.
Sector-Wide Rally: $80 Billion Added in One Day
The optimism surrounding LVMH’s results triggered a broad rally that lifted the STOXX Europe Luxury 10 Index by $89 billion. Hermès, Moncler, Richemont, Burberry. Kepler Cheuvreux analyst Jon Cox forecasted that the rally in luxury is set to continue amid stabilization in China as well as surprise resilience in the U.S.
Bernard Arnault, chairman and CEO of LVMH, was notably upbeat, calling the results a reflection of innovation, craftsmanship, and unwavering consumer passion even in a challenging environment. Markets took it as a sign that the luxury downturn might have bottomed out.
Regional Highlights: China Up, Europe Steady, Japan Soft
LVMH revealed mixed regional performance:
- Asia (excluding Japan), led by China, showed noticeable improvement, representing 28% of total revenue.
- Europe slipped 2%, reflecting inflationary pressures and reduced tourist flows.
- Japan posted a 13% decline, weighed down by currency headwinds and slower tourism spend.
Still, the overall picture brightened considerably. Third-quarter sales were reassuring, said Ariane Hayate, praising Louis Vuitton’s local-market innovation for offsetting macro weakness in the property-hit Chinese market.
Final Thoughts
LVMH’s surprise Q3 growth and China-led rebound have catalyzed a dramatic turnaround for the luxury industry, restoring confidence after months of missed expectations and sector-wide slowdown. As Bernard Arnault’s empire strengthens its foothold across Asia and continues to innovate with experiential retail—like Louis Vuitton’s ship-shaped Shanghai flagship—the luxury behemoth once again proves its resilience.
In the words of Ariane Hayate of Edmond de Rothschild:
Third-quarter sales were reassuring—proof that strategic creativity can reignite demand even when macro headwinds persist.
With stabilization in China and firm consumer confidence worldwide, the world’s largest luxury company may have just signaled that the era of recovery has begun.
