Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineNew record high for LVMH as Chinese demand returns
There was a sharp dichotomy at play as shares in luxury goods firm LVMH (MC:EPA) reached fresh all-time highs above €890 just as its Paris headquarters were being stormed by protestors railing against France’s retirement age changes.
The luxury conglomerate behind brands ranging from Louis Vuitton and Christian Dior to Givenchy and Hennessy cognac has been highly prized by investors for its pricing power and for its focus on a wealthy clientele which is relatively insulated from cost-of-living pressures.
Its first quarter update on 12 April bore this out, as the company posted sales up 17% year-on-year, ahead of analysts’ expectations, to €21 billion.
The company is benefiting from a rebound in demand from China as the country emerges from zero-Covid restrictions.
Berenberg analyst Graham Renwick says the numbers ‘demonstrate LVMH’s strong momentum and best-in-class execution – again reaffirming its high quality and strong track record, which we believe investors are favouring in this uncertain macro environment’.
Now priced at €880.80, LMVH is trading on 27 times forecast earnings for 2023.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Feature
Funds
Great Ideas
News
- Positive bank reports set S&P 500 on course for new highs
- Why Superdry shares are down almost 50% in one year
- A slowing US economy and sticky inflation leaves the Fed little choice
- What to expect from Sainsbury's results after Tesco's growth warning
- New record high for LVMH as Chinese demand returns
