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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For further details see:
LVMH: A Nonchalant Long-Term Compounder