PARIS — LVMH Moët Hennessy Louis Vuitton mentioned revenues fell 4 % within the third quarter, however gross sales in natural phrases rose for the primary time this 12 months, signaling there could also be gentle on the finish of the tunnel for the beleaguered luxurious sector.
The trade bellwether mentioned revenues for the three months to Sept. 30 totaled 18.3 billion euros, up 1 % in natural phrases, beating market expectations for a 1 % decline.
Its key style and leather-based items division additionally carried out higher than anticipated, posting a 2 % decline, versus a consensus forecast for a 4 % drop. LVMH mentioned the advance mirrored “good resilience with native clients.”
Whereas new Dior artistic director Jonathan Anderson’s first designs have but to reach in shops, his first ladies’s and males’s collections have been “tremendously nicely acquired,” the French luxurious conglomerate reported. The model lately inaugurated two new flagships in New York Metropolis and Beverly Hills.
Anderson confirmed his first ladies’s assortment for Dior on Oct. 1, successful a standing ovation, whereas artistic duo Jack McCollough and Lazaro Hernandez offered their debut line for Loewe on Oct. 3.
In the meantime, Fendi revealed on Tuesday that it has named Maria Grazia Chiuri chief artistic officer. Her first womenswear assortment for the autumn 2026 season will likely be proven in Milan in February.
Watches and jewellery additionally carried out higher than anticipated within the interval, with natural gross sales up 2 % within the third quarter. Perfumes and cosmetics have been consistent with forecasts, rising 2 %.
The wines and spirits division, which is present process a wide-ranging restructuring, sharply beat consensus estimates with a 1 % enhance, versus forecasts for a 4 % drop. Selective retailing additionally exceeded expectations, up 7 %.
LVMH mentioned the third quarter noticed enterprise decide up throughout all enterprise teams and all areas, aside from Europe, the place natural gross sales have been down 2 %, reflecting a decline in vacationer spending attributable to foreign money fluctuations, which weighed extra on the quarter than earlier within the 12 months.
Natural gross sales have been up 3 % within the U.S. and gained 2 % in Asia-Pacific, excluding Japan. In Japan, they have been down 13 %, signaling an enchancment after a 28 % drop within the second quarter.
The outcomes appeared to justify rising investor confidence in LVMH, which noticed its share value tank this 12 months amid anemic demand for luxurious items, a strengthening euro and looming U.S. commerce tariffs.
A number of analysts have lately raised their outlook for the inventory, which troughed in late June and is now buying and selling round 14 % under its stage at first of the 12 months.
In a analysis be aware earlier this month, Bernstein designated LVMH as its “finest concept” for the fourth quarter.
“LVMH continues to be the primary port of name for any new luxurious shopper. It is usually the primary port of name for a lot of would-be luxurious buyers,” analyst Luca Solca and his crew wrote. “Most of the headwinds dealing with the luxurious trade might nicely reverse within the coming 12 months. LVMH has all it takes to hit the bottom operating.”
LVMH is the primary main participant to report third-quarter gross sales. French teams Kering and Hermès Worldwide are attributable to unveil their figures on Oct. 22.
