Analysis: LVMH’s Strategy in Luxury and Sustainability of Growth
The luxury market, after a prolonged slump, seems to be recovering, with LVMH as a key indicator. Cosmetics Business examines how the beauty sector is driving the conglomerate’s sales rebound and explores the prospects for continued growth.
LVMH’s Recent Performance
LVMH reported its first sales increase since Q2 2024, showing a 1% rise in revenue for the quarter ending September 30, 2025. This signals a hopeful revival for the luxury industry.
Brand Portfolio Driving Growth
The conglomerate includes prominent fashion houses such as Dior, Givenchy, and Loewe, alongside prestigious beverage brands like Moët & Chandon, Hennessy, and Dom Pérignon. It also owns Tiffany & Co and Tag Heuer within its watches and jewelry sector.
Retail Sector Leading Sales Gains
Retail stood out with a 7% increase compared to the same period last year. Sephora’s performance was described as “remarkable,” notably driven by the record-breaking launch of Rhode in US stores and online.
Retail Division Stability
- Only division with no sales decline over the first nine months of 2025.
- Reported sales remained flat, with organic growth of 3%.
Perfumes and Cosmetics Overview
Perfumes and cosmetics sales rose by 2% in Q3 2025. However, over the first nine months, they declined by 2% on a reported basis but remained flat when measured organically.
“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 balanced portfolio and strong retail performance suggest a cautiously optimistic outlook for sustained growth in the luxury sector.
Author’s summary: LVMH’s rebound is largely fueled by beauty and retail, with Sephora’s success highlighting growth potential amid a recovering luxury market.