LVMUY Stock Recent News

Over the past decades, jewelry with even a small diamond was considered a real treasure, and its price corresponded to the premium status of the gem. However, the jewelry industry also has complaints about precious stones: the inability to customize the size, shape and other characteristics of a stone, its high price and often unethical mining methods.

LVMH reported expectedly weak interim results yesterday, further confirming the ongoing slowdown in the luxury market. Despite weakness in reported revenues and profits, however, pockets of positivity exist. Organic revenue managed to grow, margins are still strong and the US market is resilient. Further price drop will soon make LVMH attractive once again. For now though, further erosion of investor capital is likely.

LVMH's (LVMUY) second-quarter results, with tepid sales disappointing investors, showed that the pullback by consumers on high-end items and cooling Chinese spending is affecting even the world's largest luxury firm.

After a tough few weeks of market action, the French luxury stocks seemed to have found themselves in the bargain bin. Indeed, the macroenvironment has been far from perfect for high-end luxury product companies.

Shares in LVMH fell on Wednesday after the luxury group on Tuesday released its earnings for the first half of 2024.

Shares in French luxury giant LVMH dropped more than 4% at the market open on Wednesday after the company reported second-quarter sales growth below consensus estimates.

LVMH Moet Hennessy Louis Vuitton SE (OTCPK:LVMHF) Q2 2024 Earnings Conference Call July 23, 2024 12:00 PM ET Company Participants Rodolphe Ozun - Director of Financial Communications Jean-Jacques Guiony - CFO Conference Call Participants Luca Solca - Sanford Bernstein Thomas Chauvet - Citi Chiara Battistini - J.P. Morgan Edouard Aubin - Morgan Stanley Erwan Rambourg - HSBC Louise Singlehurst - Goldman Sachs Antoine Belge - Exane BNP Paribas Carole Madjo - Barclays Rogerio Fujimori - Stifel Zuzanna Pusz - UBS Charles-Louis Scotti - Kepler Piral Dadhania - RBC Liwei Hou - CICC Chris Gao - CLSA Rodolphe Ozun Ladies and gentlemen, good afternoon and welcome to today's conference call.

Luxury goods giant LVMH's latest earnings showed resilience with 2% organic growth in the first half of 2024, but the market leader fell short of analyst estimates and last year's revenue amid a slowdown in luxury fashion.

LVMH is a prime example of a high-quality business with heritage brands, family ownership, and a loyal customer base. An industry slowdown and French political turmoil exert valuation pressure on LVMH and other French luxury firms alike. LVMH delivered 35 years of continuous organic growth at 9.1% annually, with many more to come, in my view.

LVMH is a high-quality company with a low terminal value risk and exceptional management team in the luxury sector. The company's diversified portfolio of over 75 brands across different segments enhances its long-term value and mitigates risks. I discuss the benefits of investing in LVMH as a luxury ETF with higher quality than most companies in the sector.