LVMH's Q4 earnings showed mixed results with a revenue drop, but resilience in key segments like Selective Retailing. Despite margin pressures, LVMH's long-term outlook remains positive due to strong brand performance and a promising 2025. The stock's current price of ~$748 reduces the margin of safety, necessitating cautious optimism and a focus on long-term growth potential.
Luxury stocks trade lower after giant LVMH shows improvement in sales, but nevertheless left analysts underwhelmed.
Louis Vuitton Moet Hennessy shed 6% on Wednesday after news of stronger fourth-quarter sales failed to impress against a backdrop of heightened expectations. Sales climbed 1% to €23.9 billion (£20.0 billion) in the three months to December, aiding a 1% improvement over the full year to €84.7 billion.
Bernard Arnault lost a spot in the billionaire rankings after LVMH Moet Hennessy posted results that weren't as strong as some luxury-goods rivals.
Shares of luxury goods giant LVMH dropped 5% on Wednesday as investors reacted cautiously to the group's slightly better-than-expected full-year results. The owner of Louis Vuitton, Moët & Chandon and Hennessy posted revenues of 84.68 billion euros ($88.27 billion) for 2024, exceeding the 84.38 billion euros forecast by LSEG analysts.
LVMH's sales of fashion and leather goods declined in the fourth quarter, casting doubt on the prospects for a quick recovery in luxury demand. Sales at the key unit, which includes the Louis Vuitton and Christian Dior brands, slipped 1% on an organic basis as holiday shoppers remained cautious.
The luxury conglomerate is cleaning up its portfolio of labels during a downturn for high-end goods, explains @nicolesyLIVE Click Here #fashion
LVMH Moët Hennessy - Louis Vuitton, Societe Europeenne (OTCPK:LVMHF) Q4 2024 Earnings Conference Call January 28, 2025 12:00 PM ET Company Participants Bernard Arnault - Chairman and CEO Jean-Jacques Guiony - CFO Stephane Bianchi - Group MD Conference Call Participants Luca Solca - Bernstein Antoine Belge - Exane BNP Paribas Edouard Aubin - Morgan Stanley Thomas Chauvet - Citi Louise Singlehurst - Goldman Sachs Juliette Garnier - Le Monde Bernard Arnault Good evening everyone. It's a pleasure for me to be here with you tonight.
LVMH is seen as a bellwether for the wider luxury industry, with product lines spanning fashion and leather goods, wines and spirits, jewelry and cosmetics. Shares in the French luxury goods giant are currently up around 18% year-to-date, having fallen more than 13% in 2024.
Stella McCartney is repurchasing the minority stake held by LVMH in the house she founded about five years after the luxury group bought it, LVMH and Stella McCartney said in a statement on Monday.
2025 may finally mark a turning point for luxury, HSBC says.
LVMH's stock is undervalued due to temporary market fluctuations and China's economic issues, but its strong competitive advantages and brand perception remain intact. I expect a recovery in 2025 driven by Chinese fiscal stimulus and continued demand for luxury goods, especially among Millennials and Gen Z. Despite potential European economic challenges, LVMH's long-term growth is supported by its deep-rooted luxury brands and innovative payment solutions like Klarna and Afterpay.