LVMH: Arnault seeks stability as luxury faces challengesLVMH Moet Hennessy Louis Vuitton SEEURONEXT_DLY:MCActivTradesBy Ion Jauregui – Analyst at ActivTrades Bernard Arnault, Chairman and CEO of LVMH, has rejected speculation about an alleged succession battle among his five children over control of the world’s largest luxury conglomerate. The message aims to reinforce the group’s stability at a time when investors are focusing their attention on business performance. The main challenge for LVMH will be to preserve the value of its brands, protect its margins and restore growth in an environment of weaker luxury consumption momentum. A model based on unique brands LVMH’s success is based on a portfolio of brands with strong global positioning. Louis Vuitton remains one of the group’s main growth drivers, alongside brands such as Christian Dior, Tiffany & Co., Bulgari, Celine, Loewe and Fendi. Arnault’s strategy has consisted of acquiring historic brands and providing them with global resources while preserving their identity. Control over distribution, investment in design and product exclusivity have allowed the group to maintain strong pricing power. However, the sector is undergoing a normalisation phase after the strong growth experienced following the pandemic. The slowdown in Chinese consumption and greater buyer caution have reduced the pace of expansion, particularly in some fashion categories. Fundamental analysis: business quality in an adjustment phase LVMH maintains one of the strongest competitive positions in the luxury sector. The group closed 2025 with revenues close to €80 billion and a recurring operating margin of around 25%, reflecting the strength of its brands and its pricing power. The Fashion & Leather Goods division, driven by Louis Vuitton and Dior, continues to be the main profit engine, although it is also the most exposed to the slowdown in consumption, particularly in China. The group maintains a solid financial structure, with strong cash generation and the ability to continue investing in its brands. However, the market has lowered its expectations after several years of strong growth and is demanding new signs of recovery in sales and margins. The main catalysts will be the evolution of Asian consumption, the recovery of Louis Vuitton and Dior, and the group’s ability to maintain the distinctive value of its brands. Technical analysis: bearish trend and consolidation LVMH shares remain in a long-term bearish trend following the formation of a head-and-shoulders pattern between July 2022 and July 2024. The share price reached a high of €904.6 per share in 2023, subsequently beginning a correction with lower highs at €886.4, €762.7 and €654.3, the latter recorded in January. The stock found support around the €436.55 area, a level tested in June 2025 and again in May 2026. Since then, the share price has entered a sideways phase, trading around €478.80. The technical structure remains negative. The moving average crossover confirms the bearish trend, while the recent expansion between them reflects the persistence of selling pressure. The Point of Control (POC) is located around €616.8, a level that could act as a significant resistance zone in a potential recovery. The MACD shows gradual improvement, although it remains in negative territory. The RSI stands at 45.38%, within a neutral zone with still-weak momentum, although far from oversold levels. LVMH continues to hold value LVMH continues to maintain one of the most valuable collections of brands in the world, but the market requires new growth signals before confirming a sustained recovery. The family succession will remain relevant in the long term, although the share price performance will depend mainly on the group’s operational ability to restore growth, maintain margins and preserve the exclusivity that supports the value of its brands. ******************************************************************************************* The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication. All information has been prepared by ActivTrades ("AT"). 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