The French luxury goods group LVMH $MC (+0,08%) - known for brands such as Louis Vuitton, Dior and Moët & Chandon - recently presented its figures for 2024. At first glance, everything looks solid: turnover rose slightly by 1% to 84.7 billion euros. Doesn't sound bad at first, does it?
But the devil is in the detail. Profit slumped by a whopping 17% and ended up at "only" 12.55 billion euros. This result was well below analysts' expectations. It is therefore no wonder that the stock market was not exactly enthusiastic: the share price fell to around 725 euros after the close of trading.
Two areas that have been strong sales drivers in the past came under particular pressure: Wines & Spirits and Watches & Jewelry. Especially in the premium segment, where LVMH usually feels so comfortable, the wind seems to be getting a little rougher. Inflation, reluctance to spend and a weaker Chinese market are likely to play a part here.
Technically, the share now has important support zones in the 700-708 euro range and again at around 672-675 euros. If it fails to find a foothold there, further setbacks could be imminent. For traders and investors, this means that caution is advised.
In the long term, LVMH will of course remain a giant in the luxury segment. The company is financially strong, broadly positioned and can usually cushion crises well. So if you have a long-term investment horizon and are looking for a dip to enter the market, you could soon find an interesting opportunity here - provided you can live with a little volatility.
In short: LVMH is weakening somewhat, but the empire is not shaking.
I think it might be worth a closer look for long-term investors - for short-term traders, caution is currently the order of the day.
