The French luxury group Moët Hennessy Louis Vuitton (LVMH) published its current sales figures on Tuesday. In the first nine months of 2025, the global market leader for luxury goods’ sales amounted to 58.1 billion euros. This corresponded to a decrease of four percent compared to the same period last year. On an organic basis – i.e. adjusted for exchange rate changes – revenue fell by two percent.
However, the group experienced a turnaround in the third quarter: it again recorded an organic sales increase of one percent, which indicates a stabilization in a turbulent economic and geopolitical environment.
This return to slight growth is a sign of the group’s resilience in the face of the difficulties that marked 2025. These include, in particular, the effects of unfavorable exchange rate developments with a negative currency effect of minus five percent in the third quarter and the decline in tourist customers in Europe.
The retail division is the new growth engine
The most important aspect of the interim report is the exceptional results of the “Selective Retailing” division, which includes retail chains such as Sephora, DFS and Le Bon Marché.
With organic growth of seven percent in the third quarter, this division, driven by Sephora, achieved a “remarkable performance” and consolidated its global leadership position. This success underlines the strategic importance of LVMH’s investments. The group invests in retail and the beauty and perfume range. These areas are less dependent on tourist spending than handbags or watches and can therefore cushion the downturn in the traditional luxury segment.
Fashion & Leather Goods: Soft Landing and Desirability Strategy
The fashion & leather goods sector, which includes brands such as Louis Vuitton and Dior, continues to be in a phase of slowdown. It recorded an organic sales decline of two percent in the third quarter. However, this is a soft landing and significantly less dramatic than the minus nine percent decline in the second quarter.
Given the decline in tourist purchases in Europe, resilience relies on a strategy of premiumization and appeal to local customers. This is particularly true in Europe and the USA, where demand remains “solid”.
The fashion house Louis Vuitton relies on its “extraordinary creative strength”. This is supported by distinctive products and new shopping experiences. Examples include the museum space “The Louis” in Shanghai and the launch of “La Beauté Louis Vuitton”.
Christian Dior relies on French elegance. According to the group, the first collections of the new creative director Jonathan Anderson met with “overwhelming reception”. This was underlined by the opening of new “Maisons Dior” in New York and Beverly Hills.
This reveals a clear strategy aimed at long-term resilience and maintaining exclusivity rather than focusing on short-term growth.
Watches, jewelry and wine: signs of stabilization
The remaining business areas are showing encouraging signs of stabilization:
Watches & Jewelry
The Watches & Jewelry segment achieved stable organic growth of two percent in the third quarter. Demand remained good, particularly for brands such as Tiffany & Co., Bvlgari and Chaumet. They strengthened their unique product lines and introduced new boutique concepts worldwide.
Wine & Spirits
The Wines & Spirits division grew organically by one percent in the third quarter. Although this division experienced a decline over nine months, the return to slight growth is a positive sign. However, the segment continues to face purchasing restraint in key markets such as the US and China due to trade tensions.
Conclusion
The stabilization that occurred in the third quarter demonstrates the effectiveness of the LVMH Group’s diversification strategy.
The group of companies managed to offset the effects of unfavorable exchange rate effects and the decline in tourism. This was achieved through robust local demand and targeted investments in the beauty and retail sectors. LVMH relies on “continuously strengthening the desirability of its brands” and on exclusivity. In this way, the group enables its “Maisons” to face economic uncertainties and secure their quality lead on the global luxury market.
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