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.
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.
This article was originally published on forbes.com and all figures are in USD.
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