LVMH - Louis Vuitton Moët Hennessy

China’s luxury market, according to Bain, shrank by 20–25 percent between 2023 and 2025, inflicting significant revenue and valuation losses on LVMH and other French luxury groups. LVMH has since lost more than half its market value, flagship stores in Shanghai often remain empty, while local brands like Songmont are gaining traction with consumers. Additional reputational problems, such as legal disputes and political controversies involving French figures, have worsened the situation in the short term, but experts see the weakness as mostly cyclical rather than structural. » Mere på faz.net

Riots and looting in Paris hit flagship stores of brands such as Louis Vuitton and Dior and, according to the trade association’s estimates, caused damage in the high hundreds of millions. For LVMH, material losses are limited thanks to insurance and reserves, but sentiment effects and lost sales in France pose a risk because the country accounts for a significant share of revenue. Smaller boutiques and independent labels are much harder hit, and the incidents could weigh on the important quarter and the upcoming quarterly results of luxury groups. » Mere på deraktionaer.de

LVMH posted a 1% drop in third-quarter revenue to $20.5 billion and a 2% year-to-date decline to $64 billion, though favorable currency effects lifted organic growth by 1% in Q3. Fashion and leather goods fell 5% organically while Asia (ex‑Japan) was down 5% and the U.S. rose 5%; watches, jewelry and Sephora showed gains. CFO Cecile Cabanis said the group will sharpen self-help measures and avoid price cuts while balancing brand elevation with customer recruitment amid a deteriorating macro backdrop. » Mere på forbes.com

UBS reduced its price target for LVMH from €525 to €510 but left the rating at “Buy.” The bank lowered its profit estimates and expects margins to recover only to pre-COVID levels by 2030. Short-term share-price catalysts are scarce, but due to subdued sentiment, adjusted expectations and a low valuation, the risk-reward profile is attractive. » Mere på finanzen.net

LVMH missed expectations with its quarterly results, which weighed on shares of LVMH as well as Hermes, Kering and Richemont. Analysts mainly attribute the weakness to persistent consumer weakness in China and expect consensus estimates to be lowered. LVMH’s valuation is close to historical lows, but a short-term turnaround is not expected; the risk-reward profile is regarded as rather cyclically positive. » Mere på finanzen.net