LVMH Shares Dip Amidst Unimpressive Sales Growth
Shares of LVMH experienced a decline during early Frankfurt trading on Wednesday. Investors remained unimpressed by the luxury goods conglomerate's posted sales growth, particularly in light of recent strong performances by competitors and significant price gains.
Analyst Commentary
Citi analyst Thomas Chauvet noted that the "bar for LVMH had undeniably increased in recent weeks" due to robust sales improvements and expectations-beating results from peers such as Richemont, Burberry, Cucinelli, and Zegna.
Chauvet expressed that the approximately 2% outperformance in LVMH's fourth quarter 2024 group and Fashion & Leather sales was insufficient to "call this an inflection point."
Market Impact
LVMH shares opened with a 3.5% decline in early Frankfurt trading, compared to their closing price on Tuesday. However, it's worth noting that the stock has exhibited a notable increase of over 30% since its November lows.