LVMH's stock has declined 17.8% since July, presenting a buying opportunity at a Blended P/E of 20.5x, below its 15-year average of 23.5x. The luxury market is cyclical; LVMH's diversified portfolio and strong brand heritage make it a quality long-term investment despite current economic challenges. China's economic slowdown and reduced consumer confidence have impacted LVMH's revenue, but a significant stimulus package may revive growth.
Tiffany & Co executive Alexandre Arnault, 32, will take up a new position as Deputy CEO of LVMH's wine & spirits division in February 2025
The luxury market is experiencing a downturn due to a weaker global consumer, higher exposure to non-core customers, and brand fatigue. LVMH shares are down nearly 20% YTD and over 33% from their peak, reflecting an inability to overcome market weakness. LVMH's growth has decelerated across all segments and regions, with no signs of a near-term recovery, making current valuation unattractive.
LVMH , the world's largest luxury group, has appointed Cecile Cabanis as its new chief financial officer, replacing CFO Jean-Jacques Guiony with effect from February 1 next year, the company said on Thursday.
Estée Lauder (EL) stock is sinking Thursday after the beauty company withdrew its 2025 guidance and slashed its quarterly dividend by 47%. The dramatic move comes amid leadership changes and ongoing challenges in the Chinese market, with Stéphane de La Faverie set to assume the mantles of president and CEO on January 1, 2025.
French luxury company, Hermès, has managed to achieve the ultimate goal of luxury: keep demand high and supply low. In its Q3 2024 earnings, the company posted double digit sales and revenue growth of 11% and 14% respectively.
LVMH faces short-term volatility and challenges, but the long-term investment thesis remains strong, driven by brand preservation and strategic management. Despite a weak Q3, particularly in the leather and goods segment, management's focus on brand power and exclusivity remains unwavering. The Chinese market shows temporary weakness, but the long-term demand for luxury remains robust, supported by the emerging upper middle class.
LVMH founder and CEO Beranrd Arnault has seen his net worth take a hit this year as the luxury goods conglomerate's stock suffers amid weakened sales.
Swetha Ramachandran, global equities fund manager at Artemis Fund Managers, discusses current consumer trends in China, and explains why luxury goods companies are seeing a slump in sales.
The comments come as the French luxury brand saw a 3% sales decline this quarter.
The world's largest luxury group saw its shares tumble as much as 7.5% Wednesday morning to a two-year low before ticking back up by the afternoon.
It has been an unfortunate day for the European megacaps, with global luxury giant LVMH sliding nearly 5% in response to a wholly underwhelming nine-month trading update. Sales across LVMH's wines and spirits segment fell 11%, while its largest segment, fashion and leather goods, fell 3%.