Core Viewpoint - The luxury goods industry shows signs of recovery, with LVMH reporting a 1% organic revenue growth in Q3 2025, ending two consecutive quarters of decline and exceeding analysts' expectations of zero growth [2][4][9]. Financial Performance - LVMH's total revenue for Q3 2025 decreased by 4% year-on-year to €18.28 billion, but the organic growth of 1% marks the first sales rebound of the year [4][11]. - For the first nine months of 2025, total revenue fell by 4% to €58.09 billion, with an organic decline of 2% [4][9]. Segment Performance - The fashion and leather goods segment saw a smaller decline of 2% year-on-year, with revenue at €8.497 billion, better than the expected 3.5% drop [8]. - The watches and jewelry segment grew by 2% to €2.319 billion, while perfumes and cosmetics also increased by 2% to €1.958 billion [8]. - The selective retailing segment performed strongly, with a revenue increase of 7% to €3.992 billion [8]. Regional Performance - In terms of regional performance, Europe experienced a 2% organic revenue decline, primarily due to a strong euro and reduced tourist spending [8]. - The U.S. market saw a 3% revenue growth, while the Asia-Pacific market (excluding Japan) also grew by 2% [8]. - Notably, the Chinese market returned to positive growth, achieving mid to high single-digit growth, reversing the trend of declining overseas consumption [9]. Market Reaction - Following the earnings report, LVMH's stock surged by 12.22% to €599 per share, with its market capitalization approaching €300 billion [11]. - Other luxury brands, including Richemont, Hermès, and Prada, also saw significant stock price increases, collectively adding nearly $70 billion in market value [11].