Analysis: LVMH’s Success in Luxury and Future Prospects
The prolonged slump in the luxury sector seems to be ending, with LVMH demonstrating renewed strength. Cosmetics Business examines how the beauty segment is driving the conglomerate’s sales rebound and considers its sustainability.
LVMH’s Sales Growth Signals Market Recovery
For the first time since Q2 2024, LVMH reported sales growth, sparking optimism about luxury market resurgence. The world’s largest luxury group posted a 1% sales increase in the third quarter ending September 30.
Brand Portfolio Under LVMH
- Fashion houses: Dior, Givenchy, Loewe
- Alcohol brands: Moët & Chandon, Hennessy, Dom Pérignon
- Watches and jewelry: Tiffany & Co, Tag Heuer
Retail and Beauty Drive Growth
Retail led LVMH’s growth with a 7% sales increase year-on-year. Sephora’s performance was described as “remarkable,” boosted notably by the record-breaking launch of the Rhode brand in US stores and online.
Retail is the sole division to avoid a sales drop in the first nine months of 2025, holding steady on reported sales and achieving 3% organic growth.
Perfumes and Cosmetics Trends
Perfumes and cosmetics sales grew by 2% in Q3, though over the first nine months they declined 2% on a reported basis but remained flat when adjusted for organic growth.
“Sephora in particular was noted for its ‘remarkable’ performance, as was the record-breaking launch of Rhode at the beauty retailer’s US stores and online.”
LVMH’s ability to leverage its diverse luxury portfolio, especially in beauty, supports its recent comeback. Whether this growth can be sustained remains to be seen.
Summary: LVMH’s recent sales growth, driven largely by strong beauty and retail segments like Sephora, signals a potential luxury market rebound, though the longevity of this trend is uncertain.