LVMH regains balance as Sephora leads group towards stabilisation

LVMH Moët Hennessy Louis Vuitton (LVMH), the global luxury leader, announced its sales figures this Tuesday, October 14. Sales totalled 58.1 billion euros for the first nine months of 2025. The third quarter (Q3) was marked by a significant turning point, with the group returning to an overall organic growth of +1 percent. This signals a stabilisation amidst a turbulent economic and geopolitical climate.

This return to marginal growth indicates effective resilience against the challenges of 2025. These challenges include the impact of unfavourable currency fluctuations, which had a -5 percent effect in Q3, and a decline in tourist numbers in Europe.

Selective retailing: undisputed new growth engine

The key takeaway from this announcement is the exceptional performance of the Selective Retailing division.

With organic growth of +7 percent in Q3, this business group, driven by Sephora, delivered a “remarkable performance” and solidified its global leadership. This success demonstrates that LVMH's investment strategy in retail and its beauty and fragrance offerings is highly strategic. These categories are less dependent on tourist spending than handbags or watches, making them effective at cushioning the downturn in the traditional luxury market.

Fashion and leather goods: soft landing and desirability strategy

The Fashion & Leather Goods business group, which includes Louis Vuitton and Dior, is still experiencing a slowdown, posting a -2 percent decline in Q3. However, this represents a soft landing and is significantly less dramatic than the -9 percent decline recorded in Q2.

In response to the decline in tourist spending in Europe, the group is focusing on a strategy of premiumisation and enhancing the desirability of its brands for local customers. This is particularly true in Europe and the US, where demand remains “solid”:

Louis Vuitton is leveraging its “exceptional creative strength”, supported by its iconic products and unique experiences. Examples include The Louis museum space in Shanghai and the launch of La Beauté Louis Vuitton.

Christian Dior is reaffirming its French elegance and has received a “tremendous reception” for the first collections from its new artistic director, Jonathan Anderson. This is symbolised by the inauguration of new “Maisons Dior” in New York and Beverly Hills.

This is a clear strategy aimed at long-term resilience and the preservation of exclusivity, rather than a pursuit of short-term growth.

Watches, jewellery and wines: signs of stabilisation

Other divisions are showing encouraging signs of stabilisation:

Watches and jewellery

The Watches & Jewellery division posted stable growth of +2 percent in Q3. Demand remains strong, particularly for Tiffany & Co., Bvlgari, and Chaumet. These brands continue to strengthen their iconic lines and roll out new global boutique concepts.

Wines and spirits

The Wines & Spirits business grew by +1 percent in Q3. While the division has seen a decline over the nine-month period, this return to marginal sequential growth is a positive sign. The segment continues to face persistent caution in key markets such as the US and China due to ongoing trade tensions.

Diagnosis

The stabilisation observed in Q3 demonstrates the effectiveness of the LVMH group's diversification strategy.

The group has successfully offset the impact of unfavourable currency effects and a decline in tourism through robust local demand and targeted investments in beauty and retail. By focusing on the “continuous strengthening of the desirability of its brands” and exclusivity, LVMH is positioning its Maisons to navigate economic uncertainty and maintain its premium standing in the global luxury market.

This article was translated to English using an AI tool.

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