LVMH, Hermès and Kering Tell Three Different Stories About Luxury’s Recovery

Third-quarter results paint a picture of an uneven recovery. LVMH reported 1% organic revenue growth for the quarter, with watches and jewellery up 6% and fashion and leather goods down 5%. Hermès generated €4.1 billion in quarterly sales, up 4% at constant exchange rates. Kering recorded revenue of €3.345 billion, down 1% on a comparable basis, while its jewellery division grew 11% on the same measure. The companies’ adjusted metrics do not strip out exactly the same factors. They help identify trends rather than produce a precise league table.

The category matters more than the headline

A decline in fashion and leather goods at LVMH and growth in leather goods at Hermès can coexist. Their portfolios, prices and distribution models differ. For the first nine months, Hermès reported 10% growth at constant exchange rates in leather goods and saddlery, supported by both new models and established icons. At LVMH, jewellery accounted for much of the year-to-date growth in its watches and jewellery division. A group headline is a poor substitute for knowing how individual products are performing.

Channel matters as well. Kering said store traffic remained a constraint, with sales across its directly operated network, including e-commerce, down 3% on a comparable basis. If fewer people come in, turning a greater share of visits into purchases can soften the impact without addressing the underlying loss of traffic. A useful trading dashboard keeps those figures apart: footfall and conversion tell different stories.

Putting the results to work in the 2027 budget

Buying teams can break the plan down by category, city and channel. In each line, look at which products sell at full price, which customers come back and whether growth comes from selling more units or from a higher average price. If a product works in a tourist capital but loses momentum in a store serving local customers, increasing stock equally in both can tie up cash where demand is weak.

It is also useful to distinguish the products that generate volume from those that bring in new customers. They can be the same, but repeat purchases and sales by product are worth checking before crediting growth to a single launch or pricing decision.

These figures cover specific companies and a period that has already ended. Their value for planning lies in the questions they leave open: which categories are sustaining demand, where the sale takes place, and how much of that improvement will last once the novelty wears off.

Sources: LVMH results · Hermès earnings release · Kering results. Illustrative photograph: Pexels.