LVMH - H126 - Conf Call Highlights & Other Thoughts

Research evidence excerpt

LVMH - H126 - Conf Call Highlights & Other Thoughts

rketing investments is being perceived as one of the key drivers; and 3) LVMH shares - and the broader

Luxury sector - have historically moved with top line momentum, which showed no incremental fuel tonight. Moncler’s

performance last week after beating EBIT despite top line missing picked as an example of that.

• Bulls are for sure less frequent on my chats tonight. The ones in that camp are focusing on the fact that we are starting to see

improving trends in the right places (Dior inflecting, Wine & Spirits and Watches & Jewelry back into growth, margins

beating, etc).

Read Across:

• EU Luxury: Tonight’s results had no major divergence from cons expectations in terms of F&LG LFL or regional trends,

with the better margin trends being very much company specific. As a result, LVMH’s print should have limited directional

impact on the broader sector tomorrow when comapred to past results. In this context, brand momentum should remain in

focus for upcoming reporters. If anything, the polarisation of growth trends within the space is starking (Richemont JM

+24% 2w ago; Zegna Retail +17% last week...). Looking at upcoming reporters, Chiara favors the names where brand

momentum remains strong and has Brunello Cucinelli on Pos Cat Watch (reporting on Thursday; see all details here) where

the continued solid growth is at odds with share performance (-15% YTD). Some snippets on Hard Luxury: One of the

highlights of the release today and mgmt flagged stronger trends were driven by Tiffany and Bulgari on Jewelry with mid-

teens% growth supported by icons. Comments on watches remained more cautious.

• For the broader Consumer space: Not a huge amount to flag from the call. On Spirits: comments on improved demand