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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.
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