LVMH releases revenue updates for 1Q and 3Q. These are short press releases with only revenue info and limited commentary. Nevertheless, we wanted to provide a short recap.
3Q25 Revenue Update.
LVMH posted their 3Q25 revenue update and the stock reacted positively, moving +13% over the next 2 days.
LVMH returned to positive organic growth of +1% y/y in 3Q25 after posted -3% y/y for the first half of the year. In the press release they noted that Europe and the US were stable with local demand supporting those markets. Japan was down in part because of a tougher comp that benefited from tourist spending when the Yen was weaker. Though the rest of Asia saw improvement.
Their key segment—Fashion and Leather Goods—still posted negative organic growth of -2% y/y for the quarter. This a notable improvement from the -7% y/y organic growth experienced during the first half of 2025.
They commented that improvement in this segment reflected “good resilience with local customers” and new creative products and display releases with Louis Vuitton and Dior. Christine Dior’s new creative director, Jonathan Anderson, introduced a “new look” and they noted that their first women’s and men’s collections were “tremendously well received”. Dior has especially been in a bit of a rut, so perhaps it is starting to reverse.
While they provide limited information in this quarterly release, investors can have confidence that LVMH is starting to trend positive again after a period of shrinking sales. Of course new tariffs or a broader economic calamity could hault their progress, but for now it is positive. At their current ADR stock (LVMUY) price of $139 and based off their last earnings disclosure (1H25), they trade at around 27x. As a reminder though, earnings over the last twelve months contracted compared to 2024 and a return to 2024 profitability (which was a 22% profit margin versus peak of 27% in 2022) would bring their multiple down to 24x. These multiple are about 26% higher than when we published our original research report in August.
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*At the time of this writing, one or more contributors to this report has a position in LVMH. Furthermore, accounts one or more contributors advise on may also have a position in LVMH. This may change without notice.
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