CHDRY - LVMH And Christian Dior: A Tale Of Two Holding Companies

2024-02-15 16:45:10 ET

Summary

• LVMH is a luxury goods company with a diverse portfolio of brands, including Louis Vuitton and Christian Dior.
• Christian Dior SE is the holding company and its sole asset is a large stake in LVMH.
• LVMH has shown outstanding financial performance in the past, creating value for shareholders in the process.
• Christian Dior SE trades at a 17% discount to the LVMH shares it owns.
• Risks include a decline in the desirability of LVMH's brands and a potential squeeze-out at Christian Dior SE.

Author's note: Since both companies discussed in this article only report EUR numbers, all numbers will refer to EUR.

Introduction

I have previously written several articles about Hermès Paris (OTCPK: HESAY )(OTCPK: HESAF ) which is, in my opinion, the undisputed leader in the luxury goods sector and one of the best companies I know. In these articles, I repeatedly referred to some of Hermès peers, one of them being LVMH (OTCPK: LVMUY )(OTCPK: LVMHF ).

This article will be dedicated to LVMH and its parent holding company Christian Dior SE (OTCPK: CHDRF )(OTCPK: CHDRY ). The goal of this article is to:...

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