What: LVMH reported a 1% organic sales increase in Q3 2025, signalling renewed momentum for the luxury sector.

Why it is important:  This performance marks a shift from previous declines and aligns with recent strategic pivots and renewed investor confidence in luxury retail.

LVMH’s third-quarter 2025 results reveal a notable shift in the luxury sector’s trajectory, as the group posted a 1% organic sales increase to €18.3 billion, surpassing market expectations of a decline. This improvement was particularly evident in Asia-Pacific, where sales rebounded after a challenging first half, and in the United States, which continued to show resilience. The fashion and leather goods division, though still down 2%, performed better than anticipated, reflecting robust demand among local customers and the positive reception of new creative leadership at brands like Dior and Loewe. Meanwhile, watches, jewelry, and selective retailing divisions all exceeded forecasts, while Europe lagged due to reduced tourist spending and currency headwinds. These results come after a period marked by revenue declines, operational restructuring, and creative transitions, underscoring LVMH’s ability to adapt through digital innovation, regional market strategies, and renewed brand investment. The group’s performance has restored investor confidence, positioning LVMH as a bellwether for recovery and transformation in the global luxury industry. 

IADS Notes: LVMH’s Q3 2025 rebound follows a year of volatility, with earlier reports in April 2025 (“LVMH sales dip 2% in Q1,” WWD) and January 2025 (“LVMH reports 2% revenue decline in 2024,” WWD) documenting revenue declines and strategic pivots, especially in Asia and the US. The group’s renewed focus on digital engagement and experiential retail in Asia, highlighted in October 2025 (“LVMH Pivots To Engage Younger Demographics In Asia,” Retail News Asia), has been crucial in attracting younger consumers and driving regional growth. Creative leadership changes at Dior and Loewe, as noted in July 2025 (“LVMH’s net profit fell 22% in 2025 first half,” WWD) and December 2024 (“Dior builds industrial division following scrutiny over labour practices,” Inside Retail), have played a significant role in revitalizing brand performance amid market contraction. Investor sentiment has improved, supported by LVMH’s digital transformation and AI-driven strategies, as reported in June 2025 (“LVMH Bets on AI to Navigate Luxury Goods Slowdown,” The Wall Street Journal), and by long-term growth forecasts from early 2025 (“Bain-Altagamma luxury goods worldwide study forecasts long-term growth,” Bain & Company), confirming the group’s leadership in navigating industry challenges.

LVMH returns to growth in 2025 Q3, fashion and leather goods dragging