After months of sluggish sales and investor skepticism, LVMH Moët Hennessy Louis Vuitton SE has made a stunning comeback. The French luxury empire’s stock soared 13% on Wednesday, marking its biggest rally of the year after the company reported its first quarterly growth in 2025 and promised to “reinforce its leadership in global luxury.”
For a company synonymous with timeless brands like Louis Vuitton, Christian Dior, and Tiffany & Co., the return to growth wasn’t just a financial milestone — it was a signal that global appetite for luxury may be rebounding after a difficult year.
The Numbers Behind the Rebound
In its quarterly update late Tuesday, LVMH said organic revenue rose 1% year-on-year in the third quarter, ending two consecutive quarters of decline. The company generated €18.3 billion ($21.3 billion) in revenue between July and September — slightly lower than last year’s €19.1 billion, but ahead of analyst expectations.
Investors reacted swiftly. LVMH’s shares jumped nearly 13% in early Paris trading, pulling the European luxury sector along with it. The Stoxx Europe Luxury 10 Index rose 3.5% as Dior, Burberry, and Kering (Gucci’s parent) each logged major gains.
“The numbers weren’t explosive, but the market needed a sign of life — and LVMH just delivered it,” said Alexandre Pires, a Paris-based equity strategist at Société Générale.
Luxury’s Pulse Check
The rebound reflects more than just numbers. It marks a turning point in sentiment for an industry that has faced a cocktail of challenges — from sluggish Chinese demand and currency headwinds, to trade tensions and a global cost-of-living squeeze.
Yet LVMH’s diversified portfolio — spanning fashion, jewelry, beauty, and spirits — continues to give it a competitive edge. Its selective retailing division, led by Sephora, was the quarter’s star performer with 7% organic growth. The beauty retailer reported “remarkable performance,” driven in part by the viral success of Hailey Bieber’s skincare brand, Rhode, which launched exclusively through Sephora.
Even LVMH’s wine and spirits division — hit hard earlier this year by China’s levies on EU cognac and renewed U.S. tariffs — showed early signs of recovery.
A Global Luxury Reset
The company noted “solid demand” in the U.S. and Europe, and a “noticeable improvement” across Asia, except Japan, which remained stable. Analysts say this hints at a broader post-pandemic normalization in luxury spending — with travel retail, tourism, and premium cosmetics driving renewed enthusiasm.
Confidence in the Future
In a statement accompanying the results, LVMH said it remains “confident” despite an uncertain macroeconomic environment, emphasizing its focus on brand desirability, craftsmanship, and operational excellence.
“LVMH will draw on its powerful brands and the talent of its teams to reinforce its global leadership position in luxury goods once again in 2025,” the company said.
Investors see that as a strong sign. After months of muted performance, LVMH’s rally may indicate that the luxury industry’s worst days are behind it — and that consumers’ love for heritage brands remains unshaken.
