LVMH Moët Hennessy - Louis Vuitton Société Européenne

-4.23%

LVMH is one of those rare companies where a falling share price can make investors look twice. Shares recently closed near €406.50, down about 36% since the start of 2026 and roughly 16% over one year. The decline reflects a luxury slowdown, weaker aspirational demand, geopolitical uncertainty, high prices, and concerns about China. Yet the latest numbers suggest the story is not deterioration. For the first half of 2026, revenue reached €38.6 billion, with organic growth accelerating to 3% in the second quarter. Profit from recurring operations was €8.7 billion, producing a 22.5% operating margin. Free cash flow reached €4.1 billion. Fashion and leather goods returned to organic growth in the second quarter, while jewelry and selective retailing performed well. The valuation looks more interesting after the selloff. In 2025, revenue fell to €80.8 billion and net profit declined, while the operating margin slipped to 22%. Dividends remained resilient at €13 per share for 2023, 2024 and 2025, with €5.50 due in December 2026. The opportunity is recovery. The risk is prolonged weak demand. Recovery could come if China, consumer confidence, and margins improve, but timing remains uncertain. This review is for informational and educational purposes only, not financial advice.

LVMH has fallen significantly from its previous highs, with shares recently around €490. That decline has transformed a historically expensive luxury stock into a much more interesting value question. The key issue is whether the market has become too pessimistic about the recovery. First half 2026 revenue reached €40.2 billion, with organic growth of 1%. Recurring operating profit declined 4% to €8.0 billion, while the operating margin remained a strong 19.9%. Fashion and Leather Goods sales fell 1%, but the second quarter improved, returning to 1% growth. Watches and Jewelry performed particularly well, increasing 11%. Free cash flow reached €4.1 billion in the first half, while net financial debt declined 19%. Management continues focusing on product innovation, selective investment and strengthening its major brands. The dividend remains substantial. The 2025 total dividend was €13.00 per share, compared with €13.00 in 2024 and €12.50 in 2023, showing remarkable stability despite weaker earnings. The stock is down because investors remain concerned about China, cautious luxury consumers, weaker fashion demand and margin pressure. The opportunity is that improving second quarter momentum could develop into a broader recovery. Risks include prolonged weak demand, currency movements, geopolitical uncertainty and continued valuation pressure. This review is for informational and educational purposes only, not financial advice.

LVMH is one of the most powerful luxury conglomerates in the world—so why is its stock trading lower despite strong fundamentals? In this video, we unpack what’s behind the price drop, what the numbers say, and whether the market is missing a big opportunity. For more in-depth analysis like this, visit InsightfulValue.com

LVMH stock is down—should long-term investors be paying closer attention? In this video, we explore the business model, financials, dividends, and current valuation of the world’s luxury leader.

LVMH stock is slipping. We unpack the reasons behind the recent drop, review its fundamentals from a value investing angle, and consider whether this luxury giant still offers long-term potential. Powered by InsightfulValue