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LVMH Moët Hennessy - Louis Vuitton Société Européenne
LVMH Moët Hennessy - Louis Vuitton Société Européenne

-4.23%

Fashion & luxury / Luxury goods and fashion


Risks
1. Economic Risk: LVMH is exposed to economic risks such as downturns in the global economy, shifts in exchange rates, and the general volatility of global markets.

2. Regulatory Risk: As a Luxury Goods company, it is subject to regulation of the sale of certain products in certain countries, as well as to taxation policies. Additionally, LVMH is exposed to the potential of changes in the EU regulations which would impact on its ability to do business there.

3. Acquisition Risk: LVMH is highly acquisitive and therefore they are exposed to acquisition risks such as the failure to integrate newly acquired businesses into existing operations, as well as potential difficulties in realizing synergies from such acquisitions.

4. Digitalization Risk: The digitalization of the luxury goods industry in recent years has presented the threat of competition from online retailers such as Amazon and Net-a-Porter, as well as other e-commerce players.

5. Competitor Risk: As the leading luxury goods company, LVMH faces intense competition from other leading global companies such as Kering and Richemont.

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