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].

LVMH's fashion and leather goods segment fell an alarming 4% (or 5% organically) in the first quarter and 12% in the second to end the first half off 8% to $22.4 billion on a reported basis. (Photo: VCG via Getty Images)https://t.co/5JN2wTGcJj https://t.co/CreTiYmxUR ...