The fall of LVMH reflects how the cooling of consumption in key markets and commercial tensions are beginning to make a dent in the heart of the global luxury.
The LVMH actions, The leading French conglomerate in the luxury sector falls with force this Tuesday in the Paris Stock Exchange, with a setback greater than 6%, after the company reported a 2% drop in its turnover of the first quarter, well below the market expectations. This will have its impact on the Yield of the firm that quotes in the Porteña Square.
Between January and March, LVMH registered revenues of 20,311 million euros, compared to 20,694 million of the same period of the previous year. Analysts anticipated 2%sales growth, so the figure was interpreted as a clear cooling sign in the global demand for luxury products.
Despite the recoil, the company chaired by Bernard Arnault He defended the “resilience” of his performance in an uncertain economic and geopolitical context, and claimed to remain “alert but confident” for the coming months. However, they admitted a retraction of demand in the United States, especially in beauty divisions and spirits, while in China sales continued to show weakness.
Balance details
By business segments, wines and liquor billing fell 8%, while the fashion area and leather items – the most representative of the group – contracted 4%. Meanwhile, perfumes and cosmetics remained stable, and the division of watches and jewelry showed a slight advance of 1%.
Despite not providing concrete projections in the short term, the firm claimed to have confidence in a future recovery of the sector. However, analysts begin to show greater skepticism. RBC cut its forecasts for LVMH and the sector as a whole, warning about a “most challenging commercial environment” and incipient signals of lower demand in aspirational products in the US, also pressed by tariffs.
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The Canadian bank reduced its estimation of benefits by 2025 by 8% and adjusted down the target price of the action of 750 to 680 euros. He also anticipated an organic growth of 0% in 2026 – a 3% prior – by projecting a slower recovery by adverse macroeconomic and commercial factors.
From Banco Sabadell also reviewed their target price, which went from 790 to 720 euros, and postponed their rebound expectations for the luxury industry.
Source: Ambito
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