LVMH's FY 2024 Results

"Buy the rumor, sell the news"

Following last week’s article, we called out the recent rerating in (some) high-end luxury stocks. Today, the European bellwether, LVMH, reported full-year results which came in as expected, but profitability was a lowlight.

With valuations where they are today (26x EV/NOPAT for FY25), risks are skewed to the downside, barring significant margin expansion and a sharp recovery in Mainland China. Let’s take a closer look at what the report means for our high-end luxury positioning, which we’ve reorganized quite drastically last week.