LVMHF - LVMH: A Nonchalant Long-Term Compounder

2024-03-18 12:45:54 ET

Summary

• LVMH's growth is normalizing in the high-single-digit to low-double-digit range, reassuring investors.
• The company had a volatile year in 2023 but delivered decent growth and maintained profitability.
• LVMH's segments, including Fashion & Leather and Selective Retailing, showed growth, while Wines & Spirits declined.
• Following the recent stock surge, LVMH is trading at fair levels, yet it has room to beat expectations.

LVMH ( LVMHF ) was supposed to have a rough year.

Coming out of a two-and-a-half-year period of extraordinary growth, worries of a major deceleration seemed like they were becoming a reality, as the company reported supposedly underwhelming 9% organic growth in the third quarter. Investors had fled the stock, causing a 28% drawdown.

Then, came the fourth-quarter report, which showed growth isn't plummeting, it's just normalizing in the attractive high-single-digit to low-double-digit historical range....

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