LVMH share before successful bottom formation The LVMH share is in the process of successfully bottoming out.

Last Updated: 30. Januar 2024By

LVMH stock has corrected by almost 30% since its record high in April 2023. This has caused the luxury goods manufacturer to lose its status as Europe’s most valuable company to Novo Nordisk.

However, there are now signs pointing to a successful turnaround. After the company’s earnings report, LVMH stock has made a significant jump upwards.

LVMH: World’s largest luxury goods manufacturer If you are not familiar with LVMH, let me introduce the company to you. LVMH („Louis Vuitton Moët Hennessy“) is the world’s largest luxury goods conglomerate. Its range of products includes luxury items in the areas of wine and spirits, fashion and leather goods, perfume and cosmetics, as well as watches and jewelry, which are sold in its own stores and through the internet worldwide.

In addition to Louis Vuitton and Moët & Chandon, the company’s brand portfolio includes well-known names such as Bulgari, Givenchy, Dior, Dom Perignon, and TAG Heuer. In total, the conglomerate owns more than 70 luxury labels.

In addition, LVMH is also involved in art auctions and the publishing industry. Since 2021, the well-known American jeweler Tiffany & Co. has also been part of the conglomerate. The French company paid nearly $15.8 billion (at the time, 12.9 billion euros) for this acquisition, making it the most expensive in the company’s history.

LVMH reports another record year Normally, luxury goods always sell well. However, the massively increased inflation seems to have left its mark in many places. At least, most of the competition had to report mixed results. LVMH, on the other hand, surprised investors with record earnings just a few days ago.

Last year, the company increased its sales by 9% to 86.2 billion euros. Adjusted for currency effects, revenues even grew by 13%. Operating profit also rose by 8% to 22.8 billion euros. At the bottom line, LVMH earned 15.2 billion euros, also an 8% increase over the previous year. The company also plans to raise its dividend by 8% to 13.00 euros per share. This brings the dividend yield to 1.7%.

For the current fiscal year 2024, management expects further growth. However, the company did not provide a specific forecast.


Bottom formation close to completion In response to the company’s earnings, LVMH stock rose by 17% in the past trading week. With the rise above the mid-December high of 755 euros, everything now points to a successful bottom formation.

If the stock can establish itself above the 200-day moving average, currently at 772 euros, there should be nothing standing in the way of a resumption of the long-term uptrend. In the medium term, LVMH stock should be able to target its all-time high from April 2023 at around 905 euros.

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