Q3 revenue came in at €18.3bn, up 1% y-o-y organically, after a 4% decline in the previous quarter. All divisions grew, apart from Fashion & Leather Goods:

  • Wines & Spirits (+1%) benefited from strong champagne sales, which offset continued difficulties in cognac.
  • Perfumes & Cosmetics (+2%) benefited from the success of new launches by Dior and Guerlain.
  • Watches & Jewelry (+2%) was buoyed by the momentum of Tiffany and Bvlgari.
  • Selective Retailing (+7%) continues to be driven by Sephora. It is also worth noting the recovery in traffic in Hong Kong and Macao. The segment grew by 3% over the first nine months of the year, making it the best-performing division.
  • Fashion & Leather Goods (-2%), which represents over half of profits, continues to decline, albeit at a much slower pace than in Q1 and Q2 (-5% and -9% respectively).

Geographically, relief came from mainland China, which returned to positive territory after several quarters of agony. The Asia region, excluding Japan, grew by 2% over the quarter. American customers also began to spend again, while Europe lagged behind due to the decline in tourism and the unfavorable impact of currencies.

While Q3 saw a return to growth, it was also marked by a creative revival, with launches for Dior, Celine, Fendi, and Louis Vuitton. The group's flagship house inaugurated The Louis in Shanghai, a concept that combines a museum and a boutique, which in just a few weeks became the world's leading point of sale for luggage.

The comparison basis will be high in Q4 and the group will still have to contend with currency effects. This is where we will see whether this turnaround is only temporary or possibly sustainable. In any case, the quarterly performance of Bernard Arnault's group is boosting the stock, which is returning to its March levels. Note that all luxury goods companies are up this morning.