Core Insights - The article emphasizes the importance of identifying strong businesses at reasonable prices for long-term investment success [1] - It highlights a focus on technology companies while also considering opportunities in the cryptocurrency sector [1] - The investment approach is global, seeking value beyond the U.S. market [1] Company Focus - The analyst has a beneficial long position in LVMHF, indicating confidence in the company's future performance [1] - The article reflects personal opinions and insights rather than being influenced by external compensation or relationships [1] Industry Perspective - The analysis includes a trend-following strategy, suggesting a dynamic approach to investment that adapts to market changes [1] - There is a noted bias towards technology, which may indicate a trend in investor preferences within the industry [1]

Core Viewpoint - LVMH is experiencing significant challenges in the luxury goods market, with a notable decline in overall revenue and profits, yet its high-end beauty segment shows resilience and potential for growth amidst these difficulties [2][4][20]. Financial Performance - Total revenue for the first half of 2025 was €398.1 billion (approximately RMB 3,351.2 billion), a year-on-year decline of 4% [4][7]. - Operating profit decreased by 15% to €90.1 billion (approximately RMB 758.4 billion), with the operating margin dropping to 22.6%, down 2.5 percentage points year-on-year [4][7]. - The Asian market (excluding Japan) saw its share shrink by 2 percentage points to 28% [4][17]. Market Trends - The "Veblen Effect," which traditionally drove luxury consumption, appears to be weakening, particularly among younger consumers who are reassessing the value of luxury goods [6][7]. - Bain & Company warns of significant challenges ahead for the luxury sector, predicting it may face its largest setback in 15 years [7]. Beauty Segment Performance - The Perfumes and Cosmetics division reported stable revenue of €40.8 billion (approximately RMB 343.4 billion), with organic growth remaining flat [20]. - Sephora, as part of the selective retailing segment, achieved revenue of €8.63 billion (approximately RMB 726.7 billion), with a 2% organic growth, marking it as the only department with positive growth in the first half of 2025 [21][22]. Regional Insights - The Asian market's contribution to LVMH's sales has declined, with organic revenue in Japan dropping by 15% due to currency fluctuations affecting tourist spending [17][18]. - In China, LVMH's beauty brands are facing challenges, with classic brands experiencing brand aging and declining transaction volumes despite some increases in transaction value [23][24]. Strategic Initiatives - LVMH is focusing on high-end beauty as a key growth area, with significant investments in brand innovation and market entry strategies targeting younger consumers [20][27]. - The introduction of new beauty products under the Louis Vuitton brand and the expansion of Fenty Beauty in China are part of LVMH's strategy to capture the Z generation market [27][28]. Organizational Changes - Sephora's operations in China are being prioritized, with the global CEO directly overseeing the market to enhance competitiveness [30][33]. - LVMH is restructuring its DFS business and reducing workforce in its wine and spirits division to control costs amid declining luxury demand [34].

Group 1 - LVMH is reportedly looking to sell the fashion brand Marc Jacobs for approximately $1 billion [1] - The company is in discussions with multiple parties and could finalize a deal soon, as reported by the Wall Street Journal [2] - LVMH has a history of both acquiring and selling assets, having acquired Tiffany in 2021 and sold Donna Karan and DKNY in 2016 [2] Group 2 - LVMH's overall business performance declined in the first half of the year, with earnings down 22% compared to the same period in 2024 [3] - The company cited macroeconomic factors such as currency fluctuations, decreased tourist traffic, and comparisons to stronger year-ago performance as reasons for the decline [4] - The luxury market is experiencing mixed results, with high-income consumers becoming more price-conscious and seeking greater value in their luxury purchases [4] Group 3 - LVMH CEO Bernard Arnault described the luxury industry as being in "highly turbulent times" [5] - Tariffs have become a significant issue for the industry, and LVMH is prepared to increase prices and implement other strategies if tariff negotiations are unproductive [5][6] - The company may pass along the costs of tariffs to consumers as part of its mitigation strategy [6]

Group 1 - LVMH is in discussions to sell the fashion label Marc Jacobs, with a potential deal valued at around $1 billion [1][5] - The company has been engaging with multiple parties, including Authentic Brands, Bluestar Alliance, and WHP Global [2][7] - The luxury retail sector is experiencing increased deal-making activity, highlighted by Prada's acquisition of Versace for $1.4 billion earlier this year [3][7] Group 2 - LVMH's second-quarter sales slightly missed market expectations, indicating ongoing challenges in the luxury market [4] - French luxury brands are facing prolonged market challenges, including economic downturns and potential impacts from US import tariffs [6]

Core Insights - LVMH's stock rose 5.3% despite reporting declines in revenue and profits for the first half of 2025, indicating that results were better than feared and investors may believe the stock has bottomed after significant declines [1][2]. Financial Performance - LVMH's revenue declined 3% year-over-year on an organic basis, while operating profits fell 15% in the first half of 2025 [3]. - The Fashion & Leather Goods segment, which accounts for nearly half of LVMH's revenue and about 80% of operating profits, experienced an accelerating decline, with first-half revenue down 7% [4]. - The company reported a healthy operating margin of 22.6%, attributed to its strong brand portfolio and diversification, despite the overall revenue and margin decline [8]. Market Context - Prior to the earnings report, LVMH's stock had fallen 14.6% year-to-date and was over 45% below its all-time high, reflecting significant pessimism due to U.S.-China trade tensions [2]. - Investors appear to believe that the recent stock decline has created a solid bottom, viewing LVMH as a potential turnaround story if economic conditions improve in the U.S. and China [9].

LVMH is in talks to sell US fashion label Marc Jacobs in a deal that could be valued at about $1 billion, according to a report from the Wall Street Journal https://t.co/w5iF0ffuAz ...

Exclusive: LVMH Moët Hennessy Louis Vuitton is in discussions to sell fashion brand Marc Jacobs in a deal that could fetch around $1 billion https://t.co/HdRYNe8BGN ...

智通财经7月26日电，LVMH洽谈出售MARC JACOBS。 ...

Core Viewpoint - LVMH Group is in discussions to sell the Marc Jacobs brand, indicating a strategic shift in its portfolio management [1] Group 1: Company Strategy - The potential sale of Marc Jacobs reflects LVMH's ongoing strategy to optimize its brand portfolio and focus on more profitable segments [1] - This move may also be influenced by the performance of Marc Jacobs, which has faced challenges in recent years [1] Group 2: Market Implications - The sale could impact the luxury fashion market, as LVMH is a significant player, and changes in its brand ownership may alter competitive dynamics [1] - Investors may view this as a signal of LVMH's commitment to maintaining high standards in its brand offerings [1]

Core Viewpoint - Louis Vuitton is under investigation in the Netherlands for allegedly facilitating money laundering through cash purchases made by a Chinese national totaling approximately $3.5 million over an 18-month period [1][2]. Group 1: Investigation Details - A Chinese national, identified as Bei W., purchased luxury goods at Louis Vuitton stores in the Netherlands from 2021 to 2023, prompting Dutch authorities to investigate the brand for potential money laundering activities [2][4]. - The purchases were made in cash, allegedly sourced from a convicted underground banker, raising concerns about connections to organized crime [4][5]. - Dutch authorities suspect that at least one Louis Vuitton employee may have assisted the suspect in structuring payments to avoid legal reporting thresholds [5][6]. Group 2: Money Laundering Techniques - The cash transactions were structured to ensure no single purchase exceeded 10,000 euros, the threshold for mandatory reporting under Dutch law [6][7]. - The technique used by Bei W. is known as "structuring" or "smurfing," which is designed to evade detection by authorities [7]. - The purchased items were reportedly shipped to China and Hong Kong to circumvent high import taxes, a practice referred to as "daigou," which is linked to a significant underground trade valued at over $86.7 billion in 2023 [7]. Group 3: Company Impact - Louis Vuitton Netherlands has been officially named as a suspect in the investigation, although it remains uncertain whether formal charges will be filed [8]. - Louis Vuitton is a flagship brand of LVMH, which generates a substantial portion of the group's $48 billion in fashion revenue [9]. - LVMH, the world's largest luxury goods conglomerate, reported nearly $100 billion in revenue for 2024, indicating the brand's significant role in the luxury market [10].