LVMH's Q1 Update Leaves Investors with Many Questions
No trough in negative earnings revision cycle (yet) + adding to an existing position
Last Monday, the European bellwether, LVMH, reported its Q1 sales update which came in below expectations and drove a negative share price reaction of -7/8%. Late January, we called out LVMH’s lofty valuation amidst no clear signs of a distant rebound in sales and margin expansion (on a like-for-like basis, excluding one-offs and FX). Since then, the stock’s down 35%, which is quite unprecedented for a company of such market cap.
Let’s take a closer look at the Q1 results and what we think about other luxury names.
