LVMH 3Q results
A pedestrian walks past the window display of a Louis Vuitton store, operated by LVMH Moet Hennessy Louis Vuitton SE.
Ore Huiying | Bloomberg | Getty Images
Shares of LVMH popped 12% Wednesday after the French conglomerate posted growth for the first time this year.
In an update after European trading hours on Tuesday, LVMH — the world’s biggest luxury conglomerate and one of Europe’s most valuable companies — said organic growth for the third quarter came in at 1% year-on-year, marking a recovery from two consecutive quarters of declines.
Revenue for the three months to September came in at 18.3 billion euros ($21.3 billion), falling below the 19.1 billion euro revenues scooped up in the third quarter of last year, but beat analysts’ expectations.
LVMH share price
The Paris-listed firm — whose extensive portfolio of brands includes Louis Vuitton, Tiffany & Co., Christian Dior and Moet & Chandon — is seen as a bellwether for the global luxury goods market.
Its surprise positive performance pulled the European luxury sector into positive territory on Wednesday morning, with the Stoxx Europe Luxury 10 index adding more than 6%.
Moncler ended the session up 8%, while U.K. fashion house Burberry gained 3.4% and Gucci owner Kering added 4.8%.
Meanwhile, shares of Christian Dior — the holding company run by the Arnault family that owns a controlling stake in LVMH — were around 12% higher.
Bernard Arnault, France’s wealthiest person, is the longstanding CEO and chairman of LVMH.
Currency headwinds, trade tensions and economic disruptions weighed on its performance in the first nine months of the year, LVMH said on Tuesday, touting its “resilience and … powerful innovative momentum” in the third quarter.
The firm’s wine and spirits division posted a recovery after growth was dampened by uncertainty around China’s new levies on European Union cognac and new U.S. import tariffs, it said in the late Tuesday release.
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Overall, the U.S. and Europe saw “solid local demand” in the three months to September, LVMH said, while Asia — with the exception of Japan — “saw a noticeable improvement in trends.”
The firm’s selective retailing unit notched the strongest performance in the quarter, with organic growth up 7% compared to the previous year. Beauty retailer Sephora “achieved a remarkable performance,” LVMH noted, with the firm adding that Rhode — the beauty line founded by model Hailey Bieber — achieved a record-breaking launch.
“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, drawing on the authenticity and quality of its products, excellence in retail and agile organization,” the company said on its outlook on Tuesday.
“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.”
‘Ray of…
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