GICS Sector : Consumer Cyclical
LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide.The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Cape Mentelle, Newton Vineyard, Cloudy Bay, Belvedere, Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands.It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, FENDI, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA brands.
LVMH reported EUR 40 billion in revenue for H1 2025, down 3% on an organic basis, with a profit from recurring operations of EUR 9 billion, down 15% versus H1 2024. The operating margin remained high at 22.6%, 150 basis points above H1 2019. Earnings per share (EPS) came in at EUR 11.45, below estimates of EUR 12.06. The group's financial situation is strong, with free cash flow increasing to EUR 4 billion and gearing at EUR 15.2 billion.
Publication Date: Aug -02
The Wines & Spirits business group recorded EUR 2.6 billion in revenue, down 7% on an organic basis. Fashion & Leather Goods revenue reached EUR 19.1 billion, down 7% on an organic basis, with an operating margin of 34.7%. Perfumes & Cosmetics revenue was stable at EUR 4.1 billion, while Watches & Jewelry revenue was EUR 5.1 billion, unchanged on an organic basis. Selective Retailing revenue was EUR 8.6 billion, up 2% organically.
Regionally, Europe and the U.S. were flat, while Asia was more negative due to a downturn in China. The euro's strength penalized tourist purchases in Europe, and Japan saw a reversal of exceptional demand from last year. However, there was a tangible improvement in China, mainly in Q2, driven by initiatives and repatriation of tourist demand from Japan.
With a P/E Ratio of 18.37, P/B Ratio of 3.41, and P/S Ratio of 2.7, LVMH's valuation appears reasonable. The EV/EBITDA ratio is 11.69, and the Net Debt / EBITDA is 1.42, indicating a manageable debt burden. The ROIC is 10.7%, and ROE is 18.97%, suggesting a strong return on equity. As Cecile Cabanis noted, "LVMH focuses on getting the most out of costs to invest in brands," which should help drive future growth.
LVMH is focusing on long-term efficiencies, exploring opportunities such as optimizing retail costs, managing agency relationships, and improving productivity. The company is confident in its ability to grow once headwinds subside, particularly in China. With a strong brand portfolio and financial muscle, LVMH is well-positioned to navigate the challenging market environment.
Analysts see strong luxury market in 2026
Dec -05
Here's Prada's luxury empire after its $1.38 billion Versace acquisition
Dec -04
LVMH Denies Misappropriating Hermès Shares From Family Heir
Dec -03
Volcan de mi Tierra 1st Ever Marble Bottle, Colección La Gavilana I, with Master Mexican Stonemasons, ARCA
Dec -03
LVMH names Louis Vuitton chief as head of fashion group
Dec -03
LVMH: Share transactions disclosure
Dec -02
Does LVMH’s Latest Interim Dividend Hint at a Shift in Capital Allocation Strategy for ENXTPA:MC?
Dec -02
LVMH Appoints Pietro Beccari as Chair, CEO of Fashion Group
Dec -02
LVMH's luxury fashion and leather goods segment is driven by increasing demand for high-end products, expansion in Asia, and growing online sales. The segment's strong brand portfolio, including Louis Vuitton, will continue to attract high-end consumers, driving growth.
Luxury goods demand growth driven by increasing high-net-worth individuals, expanding middle-class in emerging markets, and increasing online shopping adoption.
Driven by increasing demand for luxury goods, LVMH's Watches and Jewelry segment is expected to grow steadily, fueled by the popularity of TAG Heuer, Bulgari, and Tiffany & Co., as well as the rising appetite for premium timepieces and precious jewelry among affluent consumers.
Growing demand for luxury beauty products, increasing popularity of skincare, and innovative product launches by Christian Dior, Guerlain, and Bulgari will drive the Perfumes and Cosmetics division's growth.
LVMH's growth is driven by increasing demand for premium wines and spirits, particularly in Asia. The company's strong brand portfolio, including Moët & Chandon and Hennessy, and strategic expansion into new markets will support future growth.
Diversification of LVMH's Other and Holding Companies segment, driven by strategic acquisitions and innovation, will foster growth, leveraging synergies across businesses and bolstering resilience in an increasingly competitive market.
LVMH's Eliminations and Not Allocated segment is expected to grow driven by the consolidation of inter-company transactions, unallocated expenses, and the synergies from the company's diversification across luxury goods and selective retailing, leading to increased operational efficiency and cost savings.
LVMH's wine and spirits segment includes a portfolio of prestigious brands such as Moët & Chandon, Veuve Clicquot, and Hennessy, offering a range of champagnes, wines, and spirits.
This segment includes iconic fashion brands like Louis Vuitton, Christian Dior, and Givenchy, offering high-end clothing, handbags, shoes, and accessories.
LVMH's perfumes and cosmetics segment features renowned brands like Christian Dior Beauty, Guerlain, and Bulgari, offering a range of fragrances, skincare, and makeup products.
This segment includes luxury watch and jewelry brands like TAG Heuer, Hublot, and Bulgari, offering high-end timepieces and fine jewelry.
LVMH's selective retailing segment operates a network of upscale retail stores, including DFS, Starboard Cruise Services, and La Samaritaine, offering a range of luxury products.
LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates in the luxury goods industry, where substitutes are limited. However, there is a growing trend towards sustainable and affordable luxury, which could pose a threat to the company's high-end products.
LVMH Moët Hennessy - Louis Vuitton, Société Européenne's customers are generally loyal to the brand, and the company's luxury products are often considered a status symbol. This reduces the bargaining power of customers.
LVMH Moët Hennessy - Louis Vuitton, Société Européenne relies on a network of suppliers for raw materials and components. While the company has some bargaining power, suppliers of high-quality materials may have some negotiating power.
The luxury goods industry has high barriers to entry, including significant capital requirements and the need for established brand recognition. This makes it difficult for new entrants to compete with LVMH Moët Hennessy - Louis Vuitton, Société Européenne.
The luxury goods industry is highly competitive, with several established players competing for market share. LVMH Moët Hennessy - Louis Vuitton, Société Européenne faces intense competition from companies like Kering, Richemont, and Hermès.
| Value | |
|---|---|
| Debt Weight | 28.79% |
| Debt Cost | 3.95% |
| Equity Weight | 71.21% |
| Equity Cost | 8.94% |
| WACC | 7.50% |
| Leverage | 40.44% |
Value: 0.5
Growth: 8.3
Quality: 9.2
Yield: 0.6
Momentum: 4.0
Volatility: 6.7
1-Year Total Return ->
Value: 1.3
Growth: 5.6
Quality: 6.9
Yield: 2.5
Momentum: 6.5
Volatility: 5.3
1-Year Total Return ->
Value: 5.9
Growth: 6.1
Quality: 5.8
Yield: 3.1
Momentum: 2.0
Volatility: 5.0
1-Year Total Return ->
Value: 2.3
Growth: 6.2
Quality: 6.8
Yield: 3.1
Momentum: 2.0
Volatility: 4.7
1-Year Total Return ->
Value: 2.5
Growth: 4.3
Quality: 3.8
Yield: 3.8
Momentum: 7.5
Volatility: 2.3
1-Year Total Return ->
Value: 6.4
Growth: 3.1
Quality: 2.8
Yield: 0.0
Momentum: 0.5
Volatility: 4.0
1-Year Total Return ->