Topline
Sales growth for LVMH through the French conglomerate’s latest quarter fueled a broader luxury sector rally Wednesday, boosting shares for Hermès, L’Oreal, Dior, Prada and more as Bernard Arnault, the bellwether’s billionaire chairman, had more than $18 billion added to his net worth.
The luxury bellwether reported sales growth for the first time this year.
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Key Facts
The CAC 40, France’s luxury-heavy index featuring Hermès, Kering and LVMH, among others, closed up nearly 2% on Wednesday, the largest single-day increase for the French benchmark this year.
LVMH shares traded up 12.2%, the conglomerate’s largest single-day gain since January 2024 after reporting third-quarter revenue of €18.3 billion (about $21.3 billion), its first quarterly increase (1%) for sales growth this year.
Citi analysts Thomas Chauvet and Alberto Cecchetto wrote Wednesday that LVMH’s performance will “likely set a positive tone for the upcoming luxury reporting season,” suggesting its third-quarter results are a “ray of hope” for the beleaguered luxury market.
Shares of the Paris-listed Hermès rose 7.3% to about €2,175, while Gucci owner Kering’s stock jumped 4.7% to around €313.
L’Oreal’s stock increased 3.1%, followed by gains for Cartier owner Richemont (6%), LVMH-owned Dior (11.9%), Prada (4%), Montcler (9%), Burberry (7.2%) and Watches of Switzerland (5.7%).
Forbes Valuation
Arnault has a fortune estimated at $179 billion, ranking him the seventh-richest person in the world. Wednesday’s 12% rally for LVMH’s shares tacked on about $18.18 billion, an 11.2% increase.
How Well Did Lvmh Perform In Q3?
After a 4% decline in sales through the previous quarter, LVMH surpassed economists’ forecasts of €18.2 billion in revenue for the third quarter, according to FactSet. The conglomerate’s “selective retailing unit” posted the strongest growth performance, according to LVMH, as the unit’s 7% increase was headlined by beauty retailer Sephora, which achieved a “remarkable performance.” Demand across the U.S. and Europe remained “solid,” LVMH reported, while Asia—excluding Japan—“saw a noticeable improvement in trends.”
Key Background
LVMH, the French giant whose portfolio includes luxury brands such as Louis Vuitton, Dior and Moët & Chandon, is considered a bellwether for the global luxury goods trade. The conglomerate is one of Europe’s most valuable companies, boasting a market cap of around €305 billion following Wednesday’s stock rally, ranking LVMH the second-largest European firm behind semiconductor giant ASML. Its latest earnings report marked a recovery from two consecutive quarters of declines, as LVMH touted “powerful innovative momentum” after economic disruptions dampened its performance earlier this year.
Further Reading
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