LVMH’s modest growth fails to lift its share price

LVMH Moët Hennessy Louis Vuitton reported a return to growth in the second quarter, posting 1 % organic sales growth in its fashion and leather‑goods division and an overall 3 % rise in organic sales after seven consecutive quarters of decline. Despite the turnaround, the conglomerate’s shares remain near six‑year lows, trading at a discount that analysts consider unwarranted.

Analysts note that LVMH delivered solid first‑half results with €8.7 billion of recurring profit, a 22.5 % operating margin and €4.1 billion of free cash flow. They cite macro headwinds such as the Middle East conflict and broader consumer weakness, but argue the company’s diversified luxury portfolio and strong cash generation support its valuation and suggest upside potential if conditions improve.