Has LVMH’s Luxury Slump Finally Bottomed Out?

After a prolonged period of underperformance, the luxury conglomerate LVMH may be approaching a potential turning point. While the company’s crucial fashion and leather goods division has faced significant headwinds, a recent analysis from Goldman Sachs suggests the worst could be over. This emerging optimism, however, faces scrutiny from other market observers, creating a divided landscape for investors.

Concurrent with the improved analyst outlook, LVMH is executing a strategic pivot by significantly scaling up its operations in South Korea. The luxury group is enlarging its flagship Louis Vuitton and Christian Dior stores in Seoul. Other prestigious brands within its portfolio, including Bulgari and Tiffany & Co., are also planning additional retail space.

This targeted expansion is strategically timed... Read more...