The world’s biggest luxury group LVMH reported on Tuesday, October 14, that its third-quarter revenue dropped four percent to 18.3 billion euros (US$21 billion) due to currency movements. However, the group achieved 1% organic growth in the quarter, the first uptick after several months of decline.

From January to September this year, the group posted revenue of 58 billion euros, falling by 4% year-on-year.

“With 1% organic growth, the third quarter saw an improvement across all business groups and all regions, with the exception of Europe, where revenue from tourist spending declined,” the group commented in a press release.

Sephora continues to deliver strong performance

The Perfumes & Cosmetics business group was down 2% in revenue over the first nine months of 2025, but remained stable on an organic basis. In the third quarter, the division’s organic sales (like-for-like) increased by 2%.

“In fragrances, Parfums Christian Dior benefited from the successful launches of Miss Dior Essence and Dior Homme Parfum. Sauvage remained the world’s best-selling fragrance. In makeup, the new Rouge Dior On Stage lipstick as well as innovations within Forever and Dior Addict also contributed to the Maison’s performance. Guerlain was buoyed by the latest additions to its Aqua Allegoria and L’Art & La Matière fragrance lines. Parfums Givenchy unveiled a new floral version of its iconic scent with L’Interdit Parfum,” LVMH said.

The Selective Retailing division recorded the highest growth, with turnover rising 1.65% in the third quarter (+7% like-for-like) to nearly EUR 4 billion, reflecting Sephora’s continued “remarkable performance.”

Like-for-like sales in the key Fashion & Leather Goods division, as well as the Wines & Spirits and Watches & Jewelry divisions, are all trending upwards in the third quarter.

The company insisted it "showed good resilience and maintained its powerful innovative momentum despite a disrupted geopolitical and economic environment".

Stable situation in China, while Europe struggles

For the third quarter of 2025, the statement reported "an improvement across all business groups and all regions, with the exception of Europe" where "revenue from tourist spending declined, affected by currency fluctuations, which weighed more on the quarter than earlier in the year."

As far as China is concerned, "the macroeconomic situation has not fundamentally changed," LVMH CFO Cécile Cabanis emphasized during a discussion with analysts. "The real estate market remains complex and unemployment remains high. We will therefore assume that it will take time for China and Asia to experience a recovery."

However, she pointed to the success of Shanghai’s “Le Louis,” a boat-shaped Louis Vuitton store that has become a major attraction.

LVMH also said demand dipped in Japan as 2024 had partly been bolstered by higher tourist spending due to a weaker yen.