LVMH reported a 4% decline in sales, with fashion and leather falling 9%. Operating margin contracted by 3%, reflecting weak leverage. Tourism remains subdued, impacting sales in fashion and leather. Chinese consumers are saving more due to real estate crisis and global tensions, affecting luxury spending.

Despite challenges, LVMH maintains a fair value estimate of EUR 620. Trading at a 50% discount to peers, the stock offers 20% upside potential. Louis Vuitton brand has pricing power and strong distribution, supported by marketing investments. Annual sales growth forecasted at 5% over the next decade.

Read more at Morningstar: Sales Decline Worsens Amid Tough Comparisons