After a turbulent year for global luxury, LVMH Moët Hennessy Louis Vuitton is regaining momentum, positioning itself as our “Stock of the Week” on newshub finance. The Paris-listed luxury conglomerate – home to brands like Louis Vuitton, Dior, and Hennessy – is showing early signs of recovery amid stabilising consumer demand in China and strong resilience in its fashion and leather goods division.
Shares in LVMH have climbed steadily in June following cautious optimism from analysts and executives who believe the worst of the luxury slowdown may be over. A combination of normalising Chinese consumption, steady US high-end demand, and strong pricing power across flagship brands has helped LVMH outperform key peers like Kering and Richemont in recent weeks.
Investors are increasingly eyeing Q2 as an inflection point. UBS and Bank of America have raised their outlooks, citing improving footfall in mainland China and a soft but encouraging rebound in Europe’s luxury spending. With inflation cooling and travel picking up across Asia, LVMH appears well-positioned to benefit from a broader reacceleration in global discretionary spending.
At the core of LVMH’s strength is its diversified portfolio. The fashion and leather goods segment, which accounts for nearly 50% of group profits, remains a fortress, anchored by the enduring appeal of Louis Vuitton and the creative leadership at Dior. Meanwhile, its wines and spirits division – despite softness in the US – is stabilising, while selective retail (notably Sephora) continues to outperform.
The group’s balance sheet also provides flexibility. LVMH remains one of the most cash-rich firms in the luxury space, enabling strategic investments and shareholder returns even during cyclical downturns. CEO Bernard Arnault’s long-term vision and disciplined brand stewardship continue to support premium valuations – and investor confidence.
Risks include a still-uneven macro outlook in Europe, forex pressures, and heightened competition from nimble independent luxury brands. Yet LVMH’s global scale, supply chain control, and deep brand equity offer significant downside protection.
For those looking to play the recovery in global luxury, particularly with a tilt toward enduring European quality and innovation, LVMH offers both cyclical upside and long-term defensiveness. With Q2 earnings due in July, this may be the right moment to accumulate.
Exchange: Euronext Paris
Ticker: MC
ISIN: FR0000121014
Disclosure:
This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers should conduct their own due diligence or consult a licensed financial adviser before making investment decisions. The author and Newshub Finance do not hold any positions in LVMH at the time of publication.
REFH – newshub finance
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