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The French luxury giant LVMH released its results for the first nine months of the year on October 14, 2025. The group reports consolidated revenue of €58.09 billion, showing a decline of 4% based on published data. However, the third quarter marks a turning point: organic growth has returned to a positive 1%, driven by improvements in Asia excluding Japan and the strong performance of Sephora. Exchange rate effects remain a significant drag, impacting the July-September period by as much as 5%.
In the first nine months of 2025, LVMH's consolidated revenue stands at 58.09 billion euros, down 4% in reported figures. The impact of currency fluctuations is estimated at -2% over the cumulative period, indicating increased currency pressure, particularly in the third quarter where this effect reaches -5%. The Wines & Spirits division experiences an organic decline of 4%, affected by trade tensions impacting demand for cognac in the United States and China. The Fashion & Leather Goods division, the group's primary contributor with 27.61 billion euros in revenue, shows an organic decline of 6% over nine months, and 2% in the third quarter. Meanwhile, the Perfumes & Cosmetics and Watches & Jewelry divisions remain stable or slightly positive over the entire period. The third quarter alone generates 18.28 billion euros in revenue, a 4% decline in reported figures but an organic increase of 1%, indicating a technical recovery.
The Selective Retailing segment, which includes Sephora, DFS, and Le Bon Marché, reports revenue of 12.61 billion euros, reflecting organic growth of 3% over nine months and 7% in the third quarter. This robust performance, the strongest within the group, is driven by Sephora's market share gains, with product launches and network expansion explicitly cited by management as performance drivers. In published figures, the segment remains stable over the entire period, as currency effects have mechanically neutralized organic growth. This resilience in retail contrasts with the relative weakness of proprietary luxury brands, suggesting a differentiated dynamic across channels and customer categories.
Geographically, Europe and the United States have shown stable performance over nine months compared to 2024. In Europe, a decline in tourism and currency fluctuations are affecting quarterly momentum. In the United States, strong local demand partially offsets sector challenges in the spirits industry. Japan is experiencing a significant decline, as the 2024 baseline was boosted by an influx of tourists taking advantage of the weak yen. Conversely, the rest of Asia is showing clear improvement in trends compared to 2024, though the company did not specify the extent of this progress. This recovery is a key indicator for understanding the group's trajectory in the second half of the year.
The Fashion & Leather Goods division, accounting for 47.5% of the group's revenue, experienced a 6% organic decline over nine months, reduced to -2% in the third quarter. This sequential improvement reflects a more favorable base effect and potentially the beginning of demand stabilization. The group highlights the renewal of sales concepts at Louis Vuitton and Dior, as well as the creative dynamism of its artistic directors. The Perfumes & Cosmetics division remained stable organically over nine months and grew by 2% in the third quarter, benefiting from successful launches such as Louis Vuitton Beauty and Miss Dior Essence. The Watches & Jewelry division saw a 1% organic increase over the entire period and 2% in the third quarter, driven by the rollout of new concepts at Tiffany and Louis Vuitton.
The results for the nine months highlight three major constraints. Firstly, the negative currency impact (-2% over nine months, -5% in the third quarter) affects the conversion of international revenues and mechanically weighs on reported growth. Secondly, trade tensions, particularly between the United States and China, are hindering demand for cognac, a historically profitable segment for LVMH. Thirdly, the decline in tourist spending in Europe and Japan, linked to unfavorable base effects and uncertain macroeconomic dynamics, is impacting store traffic. These three factors limit the group's ability to achieve positive reported growth in the short term, despite the organic improvement observed in the third quarter.
LVMH's management reaffirms its confidence in strengthening its leadership by 2025, despite an uncertain geopolitical and economic environment. The strategy remains focused on distribution excellence, product quality, enhancing brand desirability, and organizational agility. No financial targets are specified. The group does not disclose its semi-annual or annual results, nor the development of its margins or balance sheet structure. The organic improvement in the third quarter is a positive sign, but it alone does not allow for a conclusion of a lasting trend reversal. The performance in the coming months will depend on the group's ability to absorb monetary and geopolitical constraints while capitalizing on market share gains of its retail brands.
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