From Morningstar: 2024-10-17 07:48:00

LVMH’s fair value estimate remains at EUR 650 despite weakened revenue, leading to reduced forecasts for 2024 sales and profits. Shares are currently fairly valued after a 7% drop on Oct. 16 post Q3 results. The decline in sales was mainly due to weaker Chinese consumer demand, impacting the fashion and leather goods division the most.

The demand backdrop worsened in Q3 for LVMH’s fashion and leather goods division as sales to Chinese consumers globally fell. Louis Vuitton outperformed slightly while Dior underperformed within the division. Product innovation and marketing investments are set to improve performance, but marketing spending will be lower compared to previous years.

Overall, LVMH’s organic sales were down by 3% in the quarter, with little change seen in sales growth for other divisions. Weaker demand from Chinese consumers earlier in the year impacted jewelry and watch brands. The company remains cautious about expanding entry-priced offerings to appeal to aspirational consumers.



Read more at Morningstar: Luxury Slowdown? LVMH Shares Fairly Valued After Fall