Driven by weakening demand in China, revenue for LVMH’s largest division—Fashion & Leather Goods—fell by 5% last quarter, a decline far steeper than anticipated. This setback interrupts a recovery that had only just seen its first quarter of growth in two years. While strong demand for jewelry and solid performance from the beauty retailer Sephora provided some support, the group’s overall revenue still fell short of market expectations.
On the 12th, LVMH reported that its total revenue for the third quarter reached €18.5 billion (approximately $21.4 billion). On an organic basis—adjusting for currency fluctuations and mergers and acquisitions—revenue grew by 1%, missing the 1.3% growth forecast by the market.
Organic revenue for the Fashion & Leather Goods division dropped 5% year-on-year, a decline significantly sharper than the 1.8% contraction projected by analysts.
Conversely, the Watches & Jewelry division and the Wines & Spirits division (Moët Hennessy) both recorded 6% growth, with other segments also showing gains.
Piral Dadhania, an analyst at RBC Capital Markets, noted that these results confirm that the already fragile recovery momentum seen this year has stalled. The luxury sector has been in a slump for nearly four years, and recent factors—including conflicts in the Middle East, geopolitical instability, and inflation—have further eroded the confidence and purchasing power of potential luxury consumers.
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