LVMHF - LVMH: Luxury Market Enters Slowdown (Rating Downgrade)

2024-04-17 14:34:23 ET

Summary

• Big luxury company LVMH has seen a sharp revenue slowdown in Q1 2024, indicating that the luxury market slowdown may well and truly be here.
• Contraction in the Asia market is particularly concerning as it suggests China's post-COVID-19 recovery has fizzled out. With US and Europe forecast to be weak anyway, this is discouraging.
• At the same time, the stock's P/Es look elevated, indicating that a correction is due, at least in the short term, if not the medium term.

Global luxury company LVMH ( LVMHF ) ( LVMUY ) offers a good way to check the pulse of the luxury market. And if it just reported its sales figures for the first quarter of the year (Q1 2024) are anything to go by, this pulse is weak....

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