Shares of LVMH Moët Hennessy Louis Vuitton closed lower on Friday, continuing a downtrend that began after the luxury giant's recent earnings report. The stock finished at €536.20 in Paris, a decline of 0.37% on the session.
Post-Earnings Pressure Persists
The group's stock has retreated approximately 9% since its close on January 27. A significant selloff followed its quarterly results, during which management expressed a cautious outlook. This has cast a shadow over the broader luxury sector, with LVMH often viewed as its key bellwether.
Mixed Quarterly Results
LVMH's latest report delivered a nuanced message. Fourth-quarter revenue reached €22.7 billion, representing a 1% like-for-like increase that surpassed analyst expectations. While the watches and jewelry division saw an 8% gain, the crucial fashion and leather goods segment declined 3% on an organic basis. CEO Bernard Arnault advised analysts there was "reason to be a little cautious," citing pressures from currency fluctuations, tariffs, and rising gold costs.
Macro Data in Focus
With company-specific news quiet, investor attention has shifted squarely to macroeconomic indicators. Key releases scheduled for next week include the rescheduled U.S. non-farm payrolls report on February 11 and the U.S. Consumer Price Index (CPI) on February 13. China will also release its inflation data on February 11. These figures are seen as critical for gauging consumer strength in the luxury sector's two most important markets.
Analysts note that any signs of persistent inflation or softening demand could quickly impact luxury stock valuations. The sector remains sensitive to shifts in interest rates and currency markets.
Corporate Updates and Outlook
In other news, the company's Patou brand announced the departure of its artistic director, Guillaume Henry. On the financial front, LVMH confirmed plans to propose a final dividend of €7.50 per share at its April shareholder meeting, following an interim payout of €5.50 made in December.
As European markets reopen on Monday, LVMH will remain in focus. Its performance is likely to hinge on the upcoming economic data, which will provide the next significant test for global luxury demand.
