LVMH Leads Luxury Rally with Historic Surge Driven by China

French powerhouse LVMH Moët Hennessy Louis Vuitton SE has reignited investor confidence across the luxury sector after reporting a modest yet symbolic 1% organic sales growth in Q3 2025, largely fueled by renewed demand from China.

The announcement triggered a market-wide rally: LVMH shares soared as much as 14% on October 15, lifting the entire sector and adding roughly US $80 billion in market value to the STOXX Europe Luxury 10 Index, which tracks Europe’s leading luxury groups. Brands such as Hermès, Richemont, and Kering also rose between 5% and 8% in the wake of the news.

While growth was concentrated in perfumes, cosmetics, and watches, LVMH’s flagship fashion and leather goods division still posted a 2% decline, underscoring that the recovery remains uneven. Nonetheless, analysts see the results as a potential turning point after months of stagnation caused by softer spending in the U.S. and Europe.

The rebound coincides with a gradual improvement in China’s economy and a partial revival of international tourism, both of which could help stabilize revenues across the sector in the final quarter of the year.

“The market is once again looking at luxury with optimism, though volatility and currency headwinds will continue to shape the year’s end,” noted a Bloomberg Intelligence report.

With €58.1 billion in total revenue for the first nine months of 2025, LVMH maintains its undisputed leadership in the global luxury market, ahead of Hermès and Kering.

October’s market surge reinforces Paris as the world’s financial capital of luxury, suggesting a cautiously optimistic outlook for the industry as 2025 draws to a close.