Shares of LVMH Moët Hennessy Louis Vuitton surged to their highest single-day gain in more than two decades on Wednesday, sparking a powerful rally across Europe’s luxury sector. The world’s largest luxury conglomerate jumped as much as 14 percent after reporting stronger-than-expected third-quarter results, signaling a turnaround in Chinese demand that had long weighed on the industry.
The rebound in sentiment added nearly $80 billion in market value to the STOXX Europe Luxury 10 Index, lifting peers such as Hermès, Kering, Richemont, Burberry, and Moncler by 5 to 9 percent. The surge marks the strongest collective performance for luxury stocks since early 2024, as investors grew confident that the industry may finally be emerging from its two-year slump.
LVMH, controlled by French billionaire Bernard Arnault, reported its first quarterly sales growth of 2025, outperforming analyst expectations across all divisions, from fashion and beauty to jewellery and spirits. Analysts at Bernstein said the results “surprised positively,” while fund managers noted renewed optimism around upcoming management and creative shifts at major houses.
Sales in mainland China, a critical growth engine for the luxury industry, turned positive after months of weakness. Consumers responded strongly to experiential retail formats, including Louis Vuitton’s ship-shaped boutique in Shanghai. Spending by travelling Chinese shoppers also improved, though it remained below pre-pandemic levels.
Despite the upbeat quarter, analysts remain cautious. LVMH’s Chief Financial Officer, Cécile Cabanis, warned that global economic uncertainty and currency fluctuations could weigh on the group’s fourth-quarter performance.
UBS expects luxury sector sales to grow 4 percent organically in 2026, with momentum building in the second half as new designer collections reach stores. Still, the latest rally suggests renewed faith in the resilience of global luxury, led once again by LVMH’s enduring influence.
