LVMH – Investment Case

Their update was the first of the luxury companies since the chaotic tariff announcements out of the US and certainly point to another difficult year for luxury as the sector follows a bumpy glide-path to ‘normal’ growth levels from the frenetic pandemic peak; and spurred spirited debate around whether growth will return to historic levels or a new ‘lower’ normal sans the prior China boost...and an potentially increasingly inaccessible US market.

Below we briefly note some of the key aspects of the update and the investor presentation.

Are we surprised that organic sales growth missed consensus across the board; not really. Tell-tale datapoints in recent weeks/months have primed us for a disappointment. What were those primers we observed?

About the Author

Image of Alec Abraham
Alec Abraham
Senior Equity Analyst, Sasfin Wealth

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Intro