Shares of LVMH Moët Hennessy Louis Vuitton SE surged as much as 13% on Wednesday, marking the company’s strongest single-day gain in years, after the French luxury powerhouse posted its first quarterly growth of 2025 and reassured investors of its long-term strategy despite persistent macroeconomic headwinds.
The world’s largest luxury group reported 1% organic growth year-over-year in the third quarter, breaking a streak of two consecutive quarters of decline. The rebound sent ripples through the European luxury market, restoring investor confidence in a sector that has struggled with slowing demand and global uncertainty.
Quarterly Results Beat Expectations
LVMH’s revenue for Q3 came in at €18.3 billion ($21.3 billion) — lower than the €19.1 billion recorded a year earlier, but above analysts’ forecasts, driven by resilient demand in the U.S. and Europe and improving conditions in Asia (excluding Japan).
The results offered investors the first tangible sign that the luxury slowdown may be stabilizing. Shares of Christian Dior, LVMH’s controlling shareholder, climbed nearly 13%, while Burberry gained 7% and Kering, owner of Gucci, rose 6%. The Stoxx Europe Luxury 10 Index advanced 3.5% in early trading.
“The luxury sector had priced in a deeper slowdown,” said Clara Jensen, equity analyst at BNP Paribas. “LVMH’s modest growth was enough to reignite optimism about margin recovery and brand resilience heading into 2025.”
Divisional Highlights
LVMH’s Selective Retailing division, anchored by Sephora, emerged as the standout performer, reporting 7% organic growth from the prior year. Sephora’s performance was bolstered by the viral success of Hailey Bieber’s Rhode Beauty, which launched in partnership with the retailer and delivered record-breaking sales.
The group’s Wines & Spirits business also staged a modest recovery after facing headwinds from U.S. import tariffs and China’s proposed levies on EU cognac earlier in the year.
LVMH credited its resilience to brand diversification and the strength of its global retail network, which includes marquee names such as Louis Vuitton, Dior, Tiffany & Co., Moët & Chandon, and Bulgari.
Sector Momentum and Market Impact
LVMH’s rally helped lift the pan-European Stoxx 600, which had been subdued in recent sessions due to global trade tensions and slowing consumer demand. Analysts noted that the company’s strong performance could set the tone for upcoming earnings from other luxury majors like Hermès and Kering.
The rebound also underscores Europe’s enduring appetite for premium brands, even as economic uncertainties persist. According to Redseer Strategy Consultants, the global luxury market is expected to expand at a CAGR of 6–8% through 2030, driven by millennial and Gen Z consumers in Asia and the Middle East.
Strategic Outlook
Despite ongoing currency headwinds and geopolitical uncertainty, LVMH expressed confidence in maintaining its global leadership position in the luxury sector.
“In an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands,” LVMH said in its statement Tuesday evening.
“We will continue to rely on the authenticity and quality of our products and the excellence of our retail operations to reinforce our position in 2025.”
Analysts expect LVMH’s strong Q3 showing to renew investor interest in European equities, which have been weighed down by weak macro data and elevated inflation expectations.
