Louis Vuitton Earnings Show Luxury Bull Market Isn't Done Yet

Core Insights - The luxury market, particularly high-end brands like Louis Vuitton, is experiencing robust sales growth, outpacing mid-to-low tier brands as affluent consumers continue to spend significantly [2][5][9] Group 1: Market Dynamics - Precious metals, including gold and silver, have reached new all-time highs, contributing to a favorable investment environment for luxury brands [1] - The divergence in consumer spending trends indicates that affluent consumers are less affected by tariffs and high-interest rates compared to lower-income consumers, which benefits luxury brands [9] Group 2: Company Performance - LVMH reported Q3 sales exceeding $21 billion, reflecting a 1% year-over-year organic growth, with notable performance improvements across all five divisions [6][7] - The Fashion and Leather Goods division experienced a 2% year-over-year decline, which was better than the anticipated 4% drop, indicating a recovery from a previous 9% decline [6] - The Perfumes and Cosmetics and Selective Retailing divisions showed better-than-expected growth, contributing to overall positive sentiment among analysts [6][7] Group 3: Geographical Insights - Sales in China are nearing positive year-over-year growth after a prolonged period of stagnation, highlighting a potential recovery in this key market [7][10] Group 4: Stock Performance - LVMH's stock has risen over 25% in the last three months, with technical indicators suggesting a bullish trend, including the formation of a Golden Cross [11][14] - The stock has shown momentum after breaking above key moving averages, indicating a potential shift in investor sentiment [12][14]