LVMH: Moderate Growth in The Third Quarter

The luxury world was waiting for the third-quarter results of the giant LVMH to take the pulse of the market. While the context is not yet ideal, there are some signs of recovery. Bernard Arnault's group announced today a slight organic growth of 1%, with total revenue of €18.28 billion.

Several signs of improvement seem to be reassuring investors and luxury players. Almost all regions of the world have seen an improvement in sales, with the exception of Europe, which has been heavily impacted by currency fluctuations, which have penalized tourist spending. In its press release, the group highlights an “improvement in trends.”

The luxury sector is going through a prolonged crisis, fueled in large part by stagnation in the Chinese market, a key market for luxury goods sales. However, signs of improvement in Asia are giving cause for hope, although vulnerability remains. The “fashion and leather goods” division, which accounts for around half of the company's revenue, posted a 2% decline in organic sales.

Over the first nine months of the year, the luxury giant recorded total sales of €58.1 billion. While the luxury sector is experiencing stagnation, affected by a turbulent geopolitical context, the group nevertheless demonstrates a solidity that continues to fuel investor confidence.

As the parent company presented its third-quarter results, Italian designer Maria Grazia Chiuri was appointed as the new creative director of Fendi, the French group's fashion house, after heading up Dior's women's collections. Maria Grazia Chiuri is hardly a surprising choice: she knows the Roman fashion house well, having started her career there in 1989 after graduating from the European Institute of Design in Milan.