PRDSF - LVMH: Decline Reflects Two Concerns

2025-05-30 23:42:06 ET

Summary

• LVMH reported weak Q1 sales. The reason for the decline is twofold.
• The luxury market has faced a continued downturn, seen especially strongly in China and the US.
• More concerningly, LVMH's market share in luxury fashion has declined. Hermès, Ralph Lauren, Prada, and others have taken share from Dior's and Fendi's weakness.
• The stock's decline has been overpronounced. I estimate LVMH to have 22% upside to $676.

LVMH Moët Hennessy - Louis Vuitton, Société Européenne ( LVMHF ) has reported weak sales. The luxury powerhouse’s Q1 and outlook reflect persisting luxury market weakness. More concerningly, LVMH’s historically strong performance in luxury fashion is under question, as some of LVMH’s critical fashion brands are losing share to competitors....

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