The company’s watch and jewellery brands reported 2 per cent organic growth for the quarter, with a statement noting that Tiffany & Co. and Bulgari were notably steadfast. Total revenue from watch and jewellery brands was €2.32 billion ($AUD4.19 billion) for the third quarter and €7.4 billion ($AUD13.27 billion) for the first nine months of the year.
Total revenue for LVMH increased by 1 per cent for the quarter, reaching €18.3 billion ($AUD32.83 billion). According to reporting by CNBC, the market responded enthusiastically to the announcement, with LVMH’s share price rising by 12 per cent.
“In an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in retail and agile organisation,” the company explained in a statement.
“LVMH will draw on its powerful brands and the talent of its teams to reinforce its global leadership position in luxury goods once again in 2025.”
LVMH oversees the operations of more than 70 brands, including Tiffany & Co., Bulgari, Kering, and TAG Heuer, and is considered an economic ‘bellwether’ for the broader luxury industry.
“Economic factors, including US President Donald Trump's tariffs, the continuing real estate crisis in China and a recent surge in gold and silver prices, driving up production costs for jewellery, have added to the headwinds,” a report from Reuters reveals.
“However, the update from the first major player in the $USD400-billion luxury industry to report third-quarter sales comes as more investors have turned positive on the sector.
“Analysts have released a series of optimistic notes, saying brands' push for more affordable products and what Morgan Stanley called a "burst of creativity" from new designers at most houses could mean the worst is over.”
According to Forbes, LVMH chair Bernard Arnault’s net worth climbed to $USD181.8 billion shortly after the announcement, rising more than $USD19.3 billion within 24 hours.
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