Paris: Shares of luxury conglomerate LVMH Moët Hennessy Louis Vuitton (MC.PA) surged nearly 8% on Wednesday after the company reported a 1% year-on-year increase in third-quarter sales, marking its first growth quarter in 2025. Investors responded positively to the news, sending LVMH’s stock to €575.20 from €532.80 and lifting its market capitalization by more than €21 billion to over €287 billion.
The sales growth was largely driven by a rebound in demand from China, indicating a resurgence in one of the world’s most important luxury markets. Despite facing headwinds such as currency fluctuations and global economic uncertainties, LVMH’s wide-ranging portfolio including iconic brands such as Louis Vuitton, Dior, Tiffany, Moët & Chandon, and Sephora helped sustain the growth momentum. Analysts pointed to the diversified business model as a key factor in LVMH’s resilience.
“This performance underscores the importance of the Chinese market in driving global luxury consumption,” said an analyst at Bernstein. The rebound in Chinese demand is widely seen as a signal that the luxury sector could regain stability after a period of muted growth earlier this year. Market watchers also highlighted the company’s effective management of operational challenges and continued investment in high-demand brands.
Competitors of LVMH also appear poised to benefit from the improving sentiment. Shares of Richemont, the Swiss luxury goods group, were indicated to rise 4.8% in pre-market trading following LVMH’s announcement. Industry experts suggest that the positive momentum for LVMH could reverberate across the luxury sector, benefiting other major players in fashion, watches, and jewelry.
LVMH’s quarterly report illustrates the resilience of the luxury goods market, particularly as Chinese consumer demand recovers. The group’s ability to navigate global economic volatility while maintaining consistent growth cements its position as a leader in the luxury industry and sets a positive tone for the remainder of 2025.