Dear BoF Community,

This week, LVMH’s stock price soared by 14 percent, after the luxury group reported better-than-expected results in its third quarter, managing to eke out growth of 1 percent overall, though its fashion and leather goods group contracted by 2 percent, following a decline of 7 percent in the first half of the year. The share prices of the rest of the sector followed suit, with increases between 4 and 6 percent at Kering, Hermès and Richemont.

But dig a little deeper, and it becomes clear that LVMH’s results don’t offer all that much to cheer about. The share price rally seems to be more a reflection of hope than concrete evidence of a rebound. When I spoke to luxury executives during the blockbuster fashion month season, which concluded in Paris on Oct. 7, the sentiment remained relatively downbeat.

Indeed, the rebound in the financial markets seems to say more about the market’s low expectations for the luxury sector, which is facing its most protracted downturn since the global financial crisis of 2008. LVMH’s chief financial officer Cécile Cabanis said that the comparison basis of results from Q4 2024 will make a similar performance more challenging in the final quarter of this year.

So, at the very best, perhaps we have reached the bottom of the market. Whether it now begins to grow depends largely on consumers in the key US and China markets returning to luxury stores. Executives told me in recent weeks that store traffic, which is down about 20 percent, remains their greatest challenge. LVMH and other companies are crossing their fingers that the creative renewal sweeping through fashion with all of the designer debuts at top brands will help to draw customers back.

Don’t miss Robert Williams’ take on LVMH’s results in his new High Margin newsletter, available to BoF Professional members, as well as his views on what Maria Grazia Chiuri’s appointment as chief creative officer of Fendi signals for LVMH’s stalwart Italian luxury house.

Another market that is clearly front of mind for the luxury sector is India. There was a time when fancy Diwali parties were strictly an Indian phenomenon. And while Valentino, Bulgari and Ralph Lauren upped their stakes in capitalising on India’s festive season with events in Mumbai, there were also sparkling Diwali parties in London and New York over the past few weeks.

On Tuesday, BoF 500 members Priyanka Chopra and Rahul Mishra hosted a conversation sponsored by Johnnie Walker Blue Label in London, while the next night fellow designer Gaurav Gupta hosted a dinner in partnership with Chivas Regal. Both designers were commissioned to design special bottles to mark the occasion of Diwali, underscoring the links between luxury fashion and spirits — and yes, Diwali, when whiskey consumption runs high.

Meanwhile, this week’s opening of Galeries Lafayette in India marked the arrival of the historic French department store to the subcontinent. Late last year when I took a hard hat tour of the site near Horniman Circle in South Mumbai, I got the sense that this is the beginning of a new chapter for luxury in the world’s most populous country, home to more than 1.4 billion people.

I’m looking forward to hearing from Nicolas Houzé, executive chairman of Galeries Lafayette, about this bold global move at BoF VOICES 2025, our tenth annual gathering for big thinkers taking place this Nov. 18–21 in Oxfordshire, UK.

If you’re interested in joining us in person to learn from speakers including award-winning Italian film director Luca Guadagnino, Oscar-winning actor Riz Ahmed, superstar South African DJ and producer Black Coffee, as well as the CEOs of Prada Group, J.Crew and JD Sports, read our latest speaker announcement and request an invitation to attend.

And don’t miss this week’s episode of The BoF Podcast with pioneering Kenyan designer and new BoF 500 member Katungulu Mwendwa, who shares her inspiring journey of building a “Made in Africa” fashion brand from the ground up in Nairobi.

Imran Amed, Founder and Editor in Chief

Here are my other top picks from our analysis on fashion, luxury and beauty:

1. How to Bring the Joy Back to Fashion Marketing. Moncler’s autumn campaign, featuring actors and long time friends Robert De Niro and Al Pacino, struck an emotional chord with audiences by showcasing true friendship.

2. Will Fashion Brands Strike Gold This Diwali? Global brands are betting that glittering campaigns and festive designs will tempt Indian shoppers to look past economic headwinds and splurge during a key spending period in the retail calendar.

3. LVMH Returns to Growth in Third Quarter, but Fashion Sales Lag. The group’s largest division contracted for a fifth quarter, but all other parts of the group improved.

4. Rent-a-CEO: Why More Fashion Brands Are Hiring Part-Time Executives. From beauty labels like BLK/OPL to retailers such as Lulus, more companies are tapping seasoned fractional talent who bring expertise and low commitment in a volatile economic climate.

5. How Layering Transformed the Fragrance Market. From Chanel to Kayali, beauty brands at every price point are eschewing “signature scent” marketing in favour of creating a wardrobe of perfume options.

This Weekend on The BoF Podcast

From Nairobi to the BoF 500, designer Katungulu Mwendwa explains why making locally matters, how to design “everyday armour” people will keep for years and what global buyers must change to unlock the potential of African fashion.

To receive this email in your inbox each Saturday, sign up to The Daily Digest newsletter for agenda-setting intelligence, analysis and advice that you won’t find anywhere else.