Lagardère Travel Retail Reports Record Third Quarter Amid Global Expansion
France—In a significant milestone for the travel retail sector, Lagardère Travel Retail has announced a record-breaking third quarter (Q3) performance for the year, boasting a 5.0% increase in revenue on a like-for-like basis, culminating in total revenue of €1.695 billion. On a reported basis, the revenue shows an even more impressive rise of 6.2%. This notable performance reflects a robust recovery and growth trajectory across various geographical regions, although the North Asia market presented some challenges, notably due to recent strategic restructuring.
The company attributed this growth largely to the successful launch of a solus operation at Auckland Airport, New Zealand, where they took full control of duty-free operations beginning July of this year. Previously managed under a joint venture with LagardèreAWPL, this transition seems to have paved the way for a more streamlined and effective operational model at this key international airport.
Lagardère Travel Retail, trading as Aelia Duty Free, now has 100% control of the Auckland Airport departures and arrivals duty-free proposition. {Photo: Martin Moodie}
Significantly, excluding North Asia, the third-quarter revenues experienced an outstanding year-on-year growth of 7%, showcasing the brand’s resilience and adaptability in other key markets. The revenue uplift within other regions was further amplified by the integration of the duty-free business at Amsterdam Airport Schiphol. This consolidation stems from a joint venture established between Schiphol Group (holding a 30% stake) and Lagardère Travel Retail (70% stake), which took over the management of duty-free operations on May 1, 2025, culminating in the launch of the “Today Duty Free” brand a month later.
For the first nine months of 2025, the company’s revenue reached €4.582 billion, marking an increase of 4.4% on a like-for-like basis and 5.5% on a reported basis. Here, once again, all regions displayed growth aside from North Asia, which has been grappling with a multitude of operational challenges, including the withdrawal from several underperforming ventures in the Chinese market.
The disparity between reported and like-for-like revenue can largely be attributed to the aforementioned changes in the consolidation of the Amsterdam Airport Schiphol duty-free business. Further economic complexities led to a €31 million negative impact from currency fluctuations, primarily due to the depreciation of key currencies such as the US Dollar and the Chinese Yuan. However, slight gains were noted in the valuation of the Polish Zloty and the British Pound, lessening the overall negative impact.
Chairman and CEO Arnaud Lagardère reflected positively on the results, stating, “Lagardère Travel Retail posted record revenue of nearly €1.7 billion, driven by the success of new openings in Amsterdam and Auckland.” This sentiment underscores the strategic focus on expanding the company’s footprint within prominent international hubs, which is integral to maintaining its competitive edge in travel retail.
Regional Performance Breakdown
A granular examination of Q3 results by region reveals varying dynamics. In France, Lagardère Travel Retail experienced a 3% uptick in revenue inspired by increases in air passenger traffic, successful concession bids, and infrastructure upgrades in its Travel Essentials and food & beverage divisions. The comparative third quarter of 2024 had benefitted from a surge in activity related to the Paris Olympic Games, making this achievement particularly noteworthy.
The EMEA region, excluding France, advanced by 7%, with notable contributions from the UK, Spain, Italy, and Poland, where passenger volume growth and strategic network expansions provided a catalyst for financial growth. In Africa, the company noted a remarkable 35% increase in revenue, buoyed by successful new store openings in Cameroon and Rwanda. The Middle East similarly reported a robust growth rate of 32%, predominantly driven by expansion efforts in the UAE and Saudi Arabia.
Conversely, the Americas posted a modest 4% revenue growth, propelled primarily by network extensions and renewed sales momentum in the Travel Essentials category, despite flat air passenger traffic in North America. South America, however, defied broader trends, achieving an impressive 35% surge, largely due to a revival in tourist numbers and the operationalization of the new Jorge Chávez International Airport facility in Lima, Peru.
Meanwhile, the Asia-Pacific region experienced a challenging period, registering a 5% decline, drastically influenced by North Asia’s staggering 50% downturn amid ongoing rationalization and store closures. However, the successful inception of operations in Auckland provided a glimmer of hope for growth in this critical region.
Strategic Expansion Initiatives
Lagardère Travel Retail remains committed to bolstering its growth strategy through a series of key initiatives. A series of landmark concessions were announced this quarter, including the appointment to operate the Travel Essentials concession at London Heathrow Terminal 2. The introduction of the Relay brand in the UK airport sector marks a pivotal expansion in this prominent market. Additionally, new duty-free and food & beverage operations were launched at Saudi Arabian airports in Madinah and Tabuk.
As the market dynamics continue to evolve, Lagardère Travel Retail stands poised to leverage its strategic positions across key international airports to maximize opportunities for growth and innovation, maintaining its commitment to delivering premium retail experiences to global travelers.
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