LVMH (LVMH.PA): Inflection point reached as growth and cFX profitability improve

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LVMH (LVMH.PA): Inflection point reached as growth and cFX profitability improve

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27 Jul 2026 14:49:57 ET │ 13 pages

LVMH (LVMH.PA)

Inflection point reached as growth and cFX profitability improve

CITI'S TAKE

Buy With 2Q26 Group and Fashion & Leather organic growth accelerating

sequentially to +3% (cons.+2%) and +1% (cons.+1.7%), respectively, a ~3% Price (27 Jul 26 17:30) €466.80

1H EBIT beat driven by improved sales momentum at the three high- Target price €604.00

margin divisions and continued cost reduction (Group/F&L EBIT margin - Expected share price return 29.4%

10bp/-60bp YoY to 22.5%/34.1% vs. cons.21.8%/33.3%), and even better Expected dividend yield 2.8%

ex-FX (+40bp/+20bp), alongside a reassuring conference call, the half- Expected total return 32.2%

year results should provide a solid foundation for the shares, having

Market Cap €231,445M underperformed YTD (-28% vs.sector -20%) and derated to ~18x FY27E

US$263,106M P/E. Higher brand investment, disciplined cost control and strengthened

leadership teams should help cushion cyclical pressures, in our view. The

stabilisation in earnings since the 3Q25 sales print last October, together

with resilient 1H26 sales outside the Middle East, particularly among US Thomas ChauvetAC

and Asian consumers, supports our view that LVMH has reached an +44-20-7986-4147

inflection point in sales momentum and profitability. We expect no change thomas.chauvet@citi.com

to FY27E consensus sales and EBIT forecasts. Buy.

Alberto Cecchetto

+44-20-7986-5408

1H26 snapshot: 2Q group sales beat (+3% vs. cons.+2%) stemming from most alberto.cecchetto@citi.com

divisions except Fashion & Leather, driving a ~3% 1H EBIT beat — Group sales

reached €19.52bn (marginally above Citi €19.28bn/cons.€19.45bn), +3% YoY