Key Takeaways:
In a climate of economic and geopolitical uncertainty, LVMH reported a positive “improvement in trends” for Q3, as well as a recorded revenue of €58.1 billion ($67.57 billion) for the first nine months of 2025, with most business segments showing organic growth. For the beauty sector, performance was particularly notable, with stable growth overall through nine months, with signs of acceleration in Q3.
By the Numbers
The broader context is important to understand. LVMH overall posted +1% organic growth in Q3, despite a -5% drag from exchange rate effects. This means that the positive turn in beauty indicates genuine demand rather than accounting artifacts.
Driving Beauty Momentum
LVMH underscored a few strategic and creative moves that helped pivot momentum. This included newness and hero launches such as Parfums Christian Dior’s rollout of Miss Dior Essence and Dior Homme Parfum. Guerlain also expanded its Aqua Allegoria and L’Art & La Matière fragrance Collections. Additionally, Parfums Givenchy introduced a floral iteration of its flagship L’Interdit Parfum. In makeup, Rouge Dior On Stage and additions to the Forever and Dior Addict lines contributed to lift.
“Makeup outperformed in Q3 for Dior, supported by successful innovation, while skincare growth was driven by the prestige line,” Head of Investor Relations Rodolphe Ozun said on the earnings call.
The group also outlined how it leaned heavily into innovation, sustainability, and elevated brand experience. A standout example in Q3 was the launch of La Beauté Louis Vuitton, led by Dame Pat McGrath.
Selective and premium retail, as well as brand curation, was attributed to the conglomerate’s success. LVMH named a “highly selective retail approach,” i.e, carefully curated distribution, fewer promotions, and focus on premium presentation as leading factors. Sephora was named to have “achieved a remarkable performance” during the first nine months, delivering sustained revenue growth, gaining market share in many countries such as the UK, and reinforcing its global leadership position in beauty retailing.
CFO Cécile Cabanis emphasized Sephora’s strength on the earnings call, through a direct comparison to Amazon, which it goes head to head with now more than ever, after announcing its Sephora Storefront initiative. “Sephora is everything Amazon is not—it’s a destination where you find brands—one out of two is exclusive to Sephora—and where you meet beauty consultants. [People don’t say], ‘I’ll buy it on Amazon.’ They say, ‘I’ll go to Sephora.’”
While tourist-driven spending in Europe declined (especially owing to currency headwinds), other regions, notably parts of Asia outside Japan, showed noticeable improvement versus 2024. Mainland China also saw a positive return to growth. The US continued to show steady growth thanks to local demand, strong omnichannel presence, and Sephora’s deep network. Emerging markets in the Middle East and Latin America continued to offer outsized growth potential, driven by rising affluence and appetite for prestige beauty experiences.
Altogether, the results show that while macro pressures persist, the center of gravity for LVMH’s beauty and retail growth is shifting toward markets with strong local demand and less reliance on tourism, with Asia once again becoming the critical swing region for the group’s momentum heading into 2026.
LVMH’s Q3 2025 report reveals that even amid macro pressure, beauty remains a stabilizing anchor for the luxury conglomerate. The +2% organic growth in the quarter may not dazzle, but it is meaningful in context, and the strategic launches and premium positioning give reason for optimism.
“We are confident while we remain conscious of the macro environment, which continues to be pretty volatile,” Cabanis concluded.
