After several years of growth, LVMH (Louis Vuitton) is now facing headwinds. A weak Q3 2023 report, but also its dependence on the Chinese market, suggest this is the case. LVMH will release its Q4 2023 report on Thursday 25 January. From a technical perspective, the focus has shifted to the downside for major equity indices such as the S&P500.

Louis Vuitton Moët Hennessy (LVMH), a prominent French luxury goods conglomerate, has become the world's largest company in its sector. After COVID, LVMH experienced rapid growth that sent its valuation soaring, making it one of Europe's most valuable companies. However, after years of record growth, the luxury industry may be facing a slowdown.

As of Friday 12 January 2024, around 30 S&P500 companies have reported their fourth quarter results. 76% of S&P companies have reported a positive EPS surprise, while 55% have reported a positive revenue surprise. Estimated earnings growth for S&P500 companies in the fourth quarter of 2023 has been lowered by Wall Street analysts from positive earnings growth of 1.6% on 31 December 2023 to negative 0.1% on 12 January 2024.

Technically, the major equity indices, such as the S&P500, are currently looking rather weak with the MACD falling.

Please find out more in our weekly letter on certificates Vontobel.com: Read the weekly newsletter here
 
Link to the Swedish-translated version
 
Read more

About Vontobel:

As a globally operating financial expert with Swiss roots, Vontobel specializes in wealth management, active asset management and investment solutions. Digital Investing bundles different investment solutions for private investors either directly or via ecosystems. Read more

About Carlsquare

Carlsquare is a global research firm and financial advisor, focusing on M&A, Equity
Research and Growth Equity. Carlsquare has 150 employees with deep sector knowledge in all 11
GICS sectors. The senior equity research team has extensive experience about the stock
environment and several business sectors. The team produces company research reports,
independent valuations and trading notes. The group have offices in Canada, Denmark, France, Germany, Poland, Sweden, United Kingdom and United States. Read more

Contact
MARKUS AUGUSTSSON
Head of Equity Research
markus.augustsson@carlsquare.com
+46 (0)76 235 03 20

Attachments

Luxury- out of fashion?

© Modular Finance, source Nordic Press Releases