LVMH making stride towards new record highs?
Vegas, baby! LVMH is on the verge of hitting a jackpot and setting a new record at 806 euros. This luxury juggernaut, helmed by billionaire boss Bernard Arnault, is no novice, with its prestigious brands like Louis Vuitton, Christian Dior, and Moet & Co., weaving a golden web around the fashion industry since the early 2000s.
With a share price that's dazzled investors, offering returns of over 1000 percent and generous dividends, LVMH is more than just a fashion powerhouse - it's the ultimate luxury investment. Even when the world was reeling from the crises of 2022, LVMH continued to shine, standing tall with an all-time high of 805 euros, flaunting its eternal appeal on the stock exchange.
Eternal elegance, profitable pricing
The idea behind this sparkling success story is simple: the rich and beautiful don't care if a handbag costs 3000 or 4000 euros. This 'Luxury is eternal' mantra has given LVMH exceptional pricing power, especially in our inflationary times.
This philosophy is apparent in the company's recent financials, discussed casually over cocktails on a Thursday afternoon. Not only did the turnover and profit remain steady, but they also saw a robust 23 percent growth compared to the previous year's quarter. For LVMH, inflation-beating organic growth of 9 percent is just another day at the office.
What's next in LVMH's playbook?
With such impressive numbers and a optimistic outlook for 2023, it's only natural for investors to yearn for a piece of LVMH's luxury pie. Despite a somewhat pricey P/E ratio (18-20, depending on the estimate), the intrinsic value of luxury goods cannot be overstated. Compared to luxury rivals like Hermes, LVMH may seem like a bargain.
Don’t forget to keep a watchful eye on your portfolio, as the LVMH share just might be the glittering gem you've been searching for. Investing in esteemed brands with worldwide recognition and a dominant market position could be the key to living that carefree, luxurious life.
P.S. LVMH is part of the BÖRSE ONLINE Aktien für die Ewigkeit Index, a league of remarkably enduring values including Berkshire Hathaway, Microsoft, and Allianz. Who knows? With LVMH shining bright in your portfolio, you could find yourself joining Arnault in the ranks of the world's wealthiest.
Disclosure: The author holds positions in the financial instruments mentioned in the publication or in derivatives based on them, which could profit from the price movements arising from the publication.
Disclosure: The financial instrument’s price is derived from an index as the underlying. Boersenmedien AG has developed this index and holds the rights to it. Boersenmedien AG has entered into a cooperation agreement with the issuer of the displayed securities, under which it grants the issuer a license to use the index. In this arrangement, Boersenmedien AG receives remuneration from the issuer.
- LVMH, despite its high P/E ratio, presents a compelling investment opportunity, particularly when compared to luxury rivals like Hermes.
- With a robust 23 percent growth in its recent financials and a positive outlook for 2023, LVMH share could be the glittering gem that investors have been searching for.
- Given its high returns and generous dividends, LVMH's share price has been dazzling investors, making it more than just a fashion powerhouse.
- In anticipation of 2023, investors are yearning for a piece of LVMH's luxury pie, as its exceptional pricing power and dominant market position continue to deliver impressive financial results.
