LVMH Moët Hennessy - Louis Vuitton, Société Européenne (LV:CA) Q3 2025 Sales Call Transcript

LVMH reported resilient performance for the first nine months of 2025, with Q3 showing improved trends across all business groups. The Fashion and Leather Goods division notably benefited from strong local demand, including positive growth in Mainland China, solid sequential improvement in the U.S., and consistent positive growth from European consumers. However, a strong euro generated a significant 5% negative currency impact in Q3 and acted as a headwind for offshore demand in Europe and Japan.

Analysis

LVMH demonstrated resilient performance in the first nine months of 2025, with Q3 showing improved trends across all business groups. The Fashion and Leather Goods division was a key driver, benefiting from solid local demand across its primary markets, indicating robust underlying consumer spending in luxury goods.

Specifically, Mainland China turned positive in Q3, signaling a potential recovery in this crucial market, while the U.S. market exhibited solid growth, improving sequentially from Q2. European consumer demand also remained consistently positive, highlighting diversified regional strength for LVMH's luxury portfolio.

However, the strong euro presented a significant headwind, resulting in a negative 5% currency impact on Q3 sales. This currency strength also adversely affected offshore demand in Europe and Japan, partially offsetting the otherwise strong local market performance and requiring close monitoring by investors.

Key Decisions for Investors

• Investors should consider LVMH's underlying demand strength, particularly the positive turn in Mainland China and sequential improvement in the U.S., as indicators of robust brand power.
• Monitor currency movements, especially the euro's strength, as it significantly impacts reported sales and offshore demand, potentially masking operational performance.
• Evaluate the sustainability of improved trends in key luxury markets like China and the U.S. for continued growth momentum.