LVMH edges past Q3 revenue estimates as fashion sales slip on China weakness

LVMH reported a Q3 revenue of €18.5 billion, narrowly surpassing the €18.46 billion consensus, as gains in the U.S., Europe, and Japan outweighed a weaker Chinese market. Organic revenue grew by 1% in the quarter. For the first nine months, revenue totaled €57.1 billion, a 2% decrease reported and a 2% increase on an organic basis.

The fashion and leather goods division, LVMH's largest, experienced a 5% organic revenue decline in the quarter. The unit benefited from a strong U.S. market but faced declining demand in China. The unit generated €8.25 billion, down from €8.5 billion a year earlier. Meanwhile, watches and jewelry sales grew 6% organically, driven by jewelry.

Tiffany & Co. bolstered its HardWear, Knot, and Sixteen Stone lines, while Bvlgari's newly launched Eclettica high jewelry and watch line achieved record revenue. Selective retailing led the pack with an 8% organic growth rate. Sephora expanded its reach in several countries by introducing exclusive launches like Rhode and expanded into Belgium and Croatia.

Wines and spirits saw a 6% organic growth rate. The champagne business continued its recovery, particularly in Europe, while Hennessy cognac experienced strong momentum in Asia. Perfumes and cosmetics grew 1% organically, boosted by product launches such as Dior's J'adore Intense and Sauvage Extrait. The group expressed confidence despite an "economic and geopolitical environment that remains uncertain," stating their strategy centers on enhancing brand desirability through authenticity, quality, excellence in retail, and an agile organization.