Financial OutlookWeakening data points from China suggest that earlier forecast cuts are not enough, leading to further reductions in EBIT and a lower price target.
Market ConditionsThe next two quarters for LVMH are expected to be particularly difficult, with muted sales performance reflecting worsening trading in China, slowing growth in Japan, and soft demand from Western luxury consumers.
Sales PerformanceLVMH shares are unlikely to outperform until sales trends for Fashion & Leather improve and earnings revisions stabilise, hence further patience is required.