LVMH Moët Hennessy Louis Vuitton SE

Analyst thesis

Our recommendation is based on:

• LVMH Moët Hennessy Louis Vuitton SE’s (LVMH’s) diversified global exposure across soft and hard luxury, together with its luxury beverages business, provides resilience against changes in input costs and consumer demand trends.

• Strong equity market performance in recent years has supported spending by high-net-worth individuals through the wealth effect.

• The business is well-positioned to benefit from a recovery in demand for soft luxury, particularly within its Fashion and Leather Goods segment, should geopolitical tensions ease. However, this depends on successful brand innovation and development, as well as external forces that can influence consumer demand.

• Continued brand strength supports customer retention and reinforces long-term growth.

• The valuation level remains attractive based from a P:E perspective, but the market could be pricing in overarching geopolitical risk and its impact on markets, along with the luxury sector consumer’s appetite for spending.