Financial Performance - LVMH's fashion and leather goods segment experienced a 4% decrease (or 5% organically) in the first quarter [1] - The segment further declined by 12% in the second quarter [1] - Resulting in an 8% drop for the first half of the year, amounting to $224 billion [1]

Core Viewpoint - Investors are disappointed with the new trade deal between the E.U. and the U.S., which has negatively impacted LVMH's stock performance and reflects broader concerns in the luxury sector [1][2]. Group 1: Trade Deal Impact - The E.U. and the U.S. agreed to a 15% tariff on European goods, which has been criticized by France as a "submission" [3]. - The tariff agreement avoids a trade war but increases costs for luxury goods, which are already facing challenges [3]. - The trade war is expected to affect LVMH's fashion and leather goods segment, as well as wines and spirits, with trade-related pressures in China further hurting demand [5]. Group 2: Financial Performance - LVMH reported a 4% decline in revenue for the first half of the year, with operating profit falling 15% to €9 billion, primarily due to weakness in Asia [4]. - Organic revenue in fashion and leather goods, which constitute nearly half of LVMH's sales, declined by 7% [4][5]. Group 3: Future Outlook - Investors are looking for a potential trade deal with China, which could benefit LVMH, as China accounts for about a quarter of the global luxury market [6]. - There is disappointment that luxury goods were not excluded from the U.S. trade deal, but a strong economy and stock market may mitigate the impact of import taxes [6]. - LVMH possesses a strong portfolio of brands that should provide long-term stability, although short-term volatility is expected [7].

Financial Performance - LVMH's fashion and leather goods segment experienced a 4% decrease (or 5% organically) in the first quarter [1] - The segment further declined by 12% in the second quarter [1] - Resulting in an 8% drop for the first half, reaching $224 billion [1]

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]

Heard on the Street: Is the luxury industry going through a short-term blip or something more serious? https://t.co/2Ds03UTLJ6 ...

Heard on the Street: Is the luxury industry going through a short-term blip or something more serious? https://t.co/TCXK9wiyB6 ...

Heard on the Street: Is the luxury industry going through a short-term blip or something more serious? https://t.co/Y0R1ba9clQ ...

Investors are starting to call for the luxury conglomerate to break itself apart https://t.co/QGKY36kw9B ...

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]

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].