LVMH Faces Earnings Uncertainty Amid Decline in Sales and Market Expectations

Analyst Rogerio Fujimori from Stifel Nicolaus maintained a Hold rating on LVMH Moet Hennessy Louis Vuitton (0HAU – Research Report) and decreased the price target to €650.00 from €710.00.

Rogerio Fujimori’s rating is based on the recent performance of LVMH, which showed a decline in organic sales by 3% at the group level and a 5% drop in the Fashion & Leather Goods segment, both of which were below market expectations. The decline was largely attributed to a decrease in Chinese tourist purchases in Japan and ongoing weaknesses in other segments like Hennessy and Sephora.
Despite trading at a price-to-earnings ratio below its historical average, the limited earnings visibility and the magnitude of the Q1 sales miss suggest potential cuts to the FY25 earnings consensus. This uncertainty, combined with the company’s current valuation, supports the Hold rating as the stock may not offer significant upside in the near term.

Fujimori covers the Consumer Cyclical sector, focusing on stocks such as Hermes International, Prada SpA, and The Swatch Group. According to TipRanks, Fujimori has an average return of 2.9% and a 53.42% success rate on recommended stocks.

In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a €565.00 price target.