LVMH Earnings: Lackluster Sales, Margin Pressured; Shares Now Fairly Valued
We are reducing our fair value estimate for wide-moat LVMH to EUR 650 per share from EUR 670 to factor in slower expectations for 2024 sales progression and some margin pressure as the company is affected by the industry slowdown. After losing around a fifth of their value over the course of last year, LVMH shares trade approximately in line with our fair value estimates. We are confident in our wide moat rating for the stock and its resilience through industry slowdown. The luxury industry is cyclical, but downturns historically haven’t lasted longer than one to two years.