When we talk about luxury, we talk about $MC (-0,05%). The French giant brings together more than 75 iconic brands: Louis Vuitton, Dior, Tiffany, Sephora, Moët, Hennessy... real jewels that dominate fashion, cosmetics, wine and watchmaking.
📊 Current strength
In 2024, the company generated more than €84 billion in revenue and €12.6 billion in net profit. Even in a weak consumer environment, it maintains high margins and enviable financial strength.
This 2025, its global sales have suffered a setback, but the operating margin continues to grow (+12% in the first half of the year). This shows that the business is designed to withstand crises and emerge stronger.
💎 Valuation at a discount
The market is offering LVMH at a price below its fair value. Today the stock is trading around €493, while many valuation models put its fair value above €540-550.
In other words: luxury is on sale. A rare opportunity in such a solid group.
🚀 Catalysts for the future
- International tourism in recovery: more travel means more consumption in luxury stores.
- New lines of business: Louis Vuitton's recent entry into cosmetics and beauty may open up a multi-billion dollar market.
- Renowned creative directors at Dior and other brands that will renew interest in exclusive collections.
- Pricing power: LVMH has the ability to raise prices without losing customers, a key weapon against inflation.
💰 Dividend and stability.
Although the focus is on growth, LVMH also rewards its shareholders with growing dividends and a sustainable payout. It is not a purely passive income stock, but a quality stock that combines income and growth.
🔮 10-year view
Investing in LVMH today is to position yourself in an asset that:
- Withstands crises.
- Gains share when the economy normalizes.
- Is globally diversified.
- Has brands that are impossible to replicate.
With patience, this "luxury titan" can continue to generate solid returns and offer an attractive entry point now that the market has priced it in.
✨ Bottom line: LVMH is not just fashion and accessories, it is a global luxury empire. And right now, the market is offering the opportunity to buy quality at a reasonable price.
