LVMH’s Fashion Sales Fall 5% in Q3
The luxury conglomerate’s overall sales, meanwhile, were up 1% in the quarter.
Reported by Vogue.
The numbers luxury watchers were dreading are here. LVMH's fashion and leather goods division posted a 5% revenue decline in Q3, bringing in €8.24 billion — significantly worse than the 2% drop analysts had forecast, and a painful reversal after the division clawed back positive growth in Q2. Total group sales edged up just 1% to €18.5 billion, according to Vogue. The culprit, broadly: China.
The regional breakdown tells the story cleanly. Asia (excluding Japan) fell 5%, while the US climbed 5%, Europe 4%, and Japan 6% — a reminder that the luxury slowdown is not universal, just geographically concentrated in the world's most consequential growth market. CFO Cécile Cabanis pointed to a deteriorating consumer confidence in China from the quarter's outset, compounded by ongoing Middle East headwinds. "Self-help is a priority," she said on the earnings call — which, in corporate-speak, means the brands are doing the heavy lifting themselves while they wait for macro conditions to improve.
Brand by Brand: Who's Moving, Who's Not
LVMH doesn't break out individual brand revenue, but Cabanis offered enough texture to sketch a picture. Louis Vuitton came in just below the division's -5% performance, further bruised by a legal spat with Chinese tea brand Molly Tea — a trademark ruling in Vuitton's favor that triggered social media backlash in China and measurably dented early-quarter sales. A separate shipping disruption knocked off more than a percentage point of growth. Dior landed flat, though Jonathan Anderson's women's ready-to-wear is generating real appetite; Cabanis was unambiguous that the house is not a disappointment, flagging strong US performance and promising momentum on bag reinvention. Men's, she acknowledged, needs more work. Celine, meanwhile, is the quarter's clearest bright spot — US sales grew double digits, the Soft Triomphe is performing, and footwear posted double-digit growth. Cabanis called it a future growth driver, and the numbers back her. Loro Piana and Rimowa both outperformed. At Fendi and Loewe, creative transitions are still in early innings — new product is seeding into the mix, momentum is building in pockets, but both remain works in progress.
Beyond fashion, the picture is steadier: selective retail (read: Sephora) rose 8%, watches and jewelry gained 6%, wines and spirits climbed 6%, and perfumes and cosmetics ticked up 1%. LVMH functions as a leading indicator for the broader luxury sector — Kering and Hermès both report October 22, with HSBC projecting slowdowns of their own.
The quarter confirms what the industry has been circling around for months: the China tailwind that powered a decade of luxury growth is now a headwind, and the brands built to weather it longest will be the ones with the strongest US momentum, the most compelling product stories, and the discipline to not wait for Beijing to bail them out.
Read the original at Vogue.
