LVMH’s surprising return to growth has sparked renewed confidence across the luxury sector. It shows that the global prestige of these brands can offer good value over the long term for investors. This could be a moment to lean into luxury and add a diversified fund to your portfolio.
Louis Vuitton Moët Hennessy (LVMH) stock surged by around 13% earlier this week, after announcing a return to growth in Q3, its first quarter of organic growth this year.¹ Sales reached €18.28 billion, beating expectations, with demand in China returning.1
That upside surprise triggered a broader rally across luxury names from Hermès to Burberry, giving many of these aspirational brands a boost to their share price.
For long-term investors, it’s a reminder of how resilient global luxury demand can be, and how quickly fortunes can shift when confidence returns to a sector.
What’s fuelling the recovery
- China shows signs of life again: The rebound in Chinese consumer demand was a key driver. Mainland China is a key growth market for LVMH.2
- Sector-wide confidence lifting: LVMH’s performance has restored investor belief across peer brands. Upgrades and positive sentiment are spreading through luxury stocks.
- Luxury fundamentals still intact: Even amid economic uncertainty, the sector’s long-term appeal remains through strong brand value, pricing power, and an affluent and loyal customer base.3
Why it matters to you
This isn’t just a good day for fashion houses — it’s a sign of something bigger. The luxury sector looks like it’s finding its feet again, with confidence and spending starting to pick back up.
For investors, it’s a useful reminder that markets move in cycles, and when confidence comes back, it can do so quickly. If you’ve been overlooking global luxury names, this might be the moment to take a look
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Remember, staying diversified is key, but getting exposure to luxury and premium consumer goods could add a nice bit of balance and long-term growth potential to your portfolio.
How Chip can help you take advantage
Through Chip, you can tap into thematic funds, such as the Global Luxury ETF, which give you exposure to a range of prestige brands without needing to pick individual stocks.
Check out those fund options in the Invest tab in your app today and see how you could put your money to work today with a tax-free Stocks & Shares ISA or General Investment Account.
Important to know: When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than your original investment.