LVMH Leads Luxury Rebound as China Demand Recovers, While EU Fines Gucci, Chloé and Loewe for Price-Fixing

The European luxury sector is experiencing a month of contrasts. While LVMH Moët Hennessy Louis Vuitton surprised markets with a return to growth in Q3 2025, driven by a rebound in Chinese demand, the European Commission has imposed heavy fines on Gucci, Chloé, and Loewe for retail price-fixing practices.

The group led by Bernard Arnault reported an organic sales increase of +1%, breaking the downward trend that had marked the first half of the year. The rebound was mainly fueled by Asia, where spending on high-end fashion, jewelry, and perfumes is showing renewed momentum after several cautious quarters.

LVMH shares surged more than 12% on the Paris Stock Exchange, pulling up peers such as Hermès and Kering, in what analysts describe as a sign of “cautious optimism” for the remainder of the 2025 fiscal year.

However, the celebration was tempered by the European Commission’s decision to fine three major fashion houses a total of €157 million for maintaining agreements that restricted discounts and limited retailers’ ability to set independent prices.
The largest fine was imposed on Gucci (€119.7 million), while Loewe—part of the LVMH group—received a reduced penalty (€18 million) after cooperating with investigators.

The case sets a precedent within the European luxury market, highlighting the EU’s increased scrutiny of vertical price control practices among top luxury brands. According to the Commission, these policies “restricted competition and harmed both retailers and consumers across the Union.”

For industry observers, the message is twofold:
on one hand, luxury consumption is proving resilient, with Asia signaling a potential cyclical bottom; on the other, Europe is reinforcing its regulatory framework to ensure transparency and fair competition, even within the most exclusive tiers of the market.