Daily Retail and Luxury News (28 July 2026): LVMH model update, Shein prospectus read-across, Pepco buyback relaunch

研报英文原文证据摘录

Daily Retail and Luxury News (28 July 2026): LVMH model update, Shein prospectus read-across, Pepco buyback relaunch

services,

if applicable) from LVMH within the past 12 months.

M: LVMH is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank PLC and/or an

affiliate.

N: LVMH is, or during the past 12 months has been, a non-investment banking client (non-securities related services) of Barclays Bank PLC and/or an

Valuation Methodology: Our price target is based on a blend of DCF and SOTP using EV/EBIT multiples for all segments. For our DCF we assume an

equity risk premium of 4.2% and a beta of 1.2, which results in WACC of 7.8%. We assume a long-term growth rate of 2.5%, in line with the sector.

Risks which May Impede the Achievement of the Barclays Research Valuation and Price Target: Risks to the downside include further

deterioration of the macro environment and weakening momentum of its core brands including Louis Vuitton which could lead to further margin

contraction. The various management changes that happened at the group over the recent years could drive execution risk. Besides, other structural

issues (lower appetite for luxury goods for new generations; maturity of Chinese market...) also remain a long-term concern that could bring some

downside. Risks to the upside include a higher-than-expected level of resilience of the US consumers and a faster recovery of the Chinese cohort

would also be a tailwind. Considering the group's more disciplined opex approach, stronger topline growth could drive to clear margin upside

potential.

Disclaimer:

This publication has been produced by Barclays Research Department in the Investment Bank of Barclays Bank PLC and/or one or more of its affiliates