LVMH bounces back, powered by Sephora and Beauty division growth

Luxury giant LVMH has returned to growth in the third quarter of 2025, buoyed by the strength of its beauty portfolio and the continued momentum of Sephora. The group posted 1% organic revenue growth after months of slowdown across the global luxury market, signalling early signs of recovery.

The group recorded revenue of €58.1 billion (£50.64 billion) for the first nine months of the year, reflecting a 2% organic decline overall. The company said this was due to inflationary pressures, volatile exchange rates and lower luxury demand in China and the US. However, all divisions showed improvement in Q3, marking a stabilisation that LVMH described as a "return to positive momentum".

Europe and the US remained steady, while Asia saw "noticeable improvement" compared to 2024. Japan, however, slipped year-on-year.

LVMH’s Perfumes & Cosmetics division saw a 2% rise in Q3, supported by global demand for Dior Beauty and Guerlain.

Meanwhile, Sephora continued its global dominance, driving the Selective Retailing division’s 3% increase over nine months (accelerating to 7% in the third quarter). It reported "remarkable" growth, gaining market share in key regions and strengthening its omnichannel experience. Breakout launches, including Hailey Bieber’s Rhode, drew record demand, while Sephora continued to expand its curated brand portfolio and physical footprint.

The group’s largest division, Fashion & Leather Goods, saw revenue dip by 6% over the nine months, though the third quarter signalled a partial recovery. Louis Vuitton and Dior continued to anchor performance.

At Dior, new Creative Director Jonathan Anderson introduced his debut menswear and womenswear collections, described by the group as a “tremendously well-received” reimagining of the brand’s New Look. Meanwhile, yesterday, Fendi confirmed Maria Grazia Chiuri’s appointment as Chief Creative Officer.

The Watches & Jewellery category achieved 1% organic growth, driven by Tiffany & Co. and Bulgari.

Despite the slow start to the year, LVMH said it remains confident in its long-term growth strategy.

"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 a statement.

The latest figures suggest that LVMH, and by extension the wider luxury sector, may be stabilising after months of downward spiralling.