Leading luxury goods group sees signs of recovery in China

LVMH Moet Hennessy Louis Vuitton, the world's largest luxury goods group, has reported revenue of 58.1 billion euros ($67.7 billion) for the first nine months of 2025, up 1 percent year-on-year, buoyed by improving demand in China.

The modest uptick offers a positive signal for a global luxury sector struggling with a waning appetite for high-end goods.

The company said it maintained "good resilience and powerful innovative momentum" despite ongoing geopolitical and economic uncertainty.

Revenue in Europe and the United States remained broadly stable compared with the same period in 2024, supported by solid local demand.

Japan posted a decline, reflecting a normalization from last year's tourist-driven surge fueled by a weaker yen.

Meanwhile, the rest of Asia — largely dominated by China — recorded a notable turnaround, with 2 percent growth after contractions of 6 percent and 11 percent in previous quarters this year.

The third quarter was LVMH's first of organic growth this year, with all groups and regions improving except Europe, where tourist spending fell due to currency shifts.

"The Chinese mainland market turned positive in Q3," Chief Financial Officer Cecile Cabanis told analysts during an earnings call. "We are getting very close to stabilization. Chinese local demand is now growing mid to high-single digits, and while Chinese travel purchases are still down double digits, they are improving significantly."

Cabanis cautioned that LVMH faces headwinds heading into the fourth quarter, including unfavorable currency movements and a challenging macroeconomic outlook. However, she expressed confidence in the group's creative momentum, noting that financial improvement would come "gradually" over time.

Chinese consumers have long driven luxury market growth, but recent years saw slowed spending, particularly among younger buyers, impacting brands like Gucci, whose first-half sales fell 26 percent this year.

Despite that, Zhou Ting, head of consultancy Yaok Institute, said LVMH's recent rebound in China was closely tied to Louis Vuitton's marketing efforts.

Launched in June in Shanghai, in the shape of a magnificent boat, "The Louis" is a 1,600-square-meter, three-storey experience space, measuring 114.5 meters in length and 30 meters in height, comprising retail, Le Cafe Louis Vuitton, and a Louis Vuitton Visionary Journeys exhibition.

"'The Louis' concept has been a major contributor to LVMH's performance recovery in China," Zhou told Beijing Business Today.

"The project has helped LV stand out amid a sluggish market, generating both attention and sales," Zhou added.

Zhou said that LVMH's broader "store optimization strategy" — closing smaller locations, expanding flagship experiences, and engaging with high-end communities through exclusive events — has enhanced its brand performance in China.

Euromonitor International projects a gradual recovery for China's luxury market, with retail value to rise to 3.13 trillion yuan ($380 million) this year from 3.01 trillion yuan in 2024.

wangzhuoqiong@chinadaily.com.cn