{"id":1446305,"date":"2026-06-24T10:02:58","date_gmt":"2026-06-24T08:02:58","guid":{"rendered":"https:\/\/www.payoff.ch\/news\/lvmh-is-the-glory-returning"},"modified":"2026-06-24T12:46:45","modified_gmt":"2026-06-24T10:46:45","slug":"lvmh-is-the-glory-returning","status":"publish","type":"post","link":"https:\/\/www.payoff.ch\/en\/news\/lvmh-is-the-glory-returning","title":{"rendered":"LVMH: Is the Glory Returning?"},"content":{"rendered":"\n

Luxury is getting more expensive \u2013 and not just in the storefronts of major fashion houses. Most recently, Rolex caused a stir: According to industry sources, the Swiss watchmaker has raised prices for gold watches worldwide by an average of about 5%. This was already the second price increase this year. The move is driven by sustained demand for premium products, as well as by the sharp rise in the price of gold. Rolex is not alone in this. Fine timepieces from other luxury brands, including Richemont<\/a><\/strong>, LVMH<\/a><\/strong>, Swatch<\/a><\/strong>, Breitling, and Chopard have all become 4% to 6% more expensive on average compared to last year. For the industry, this is more than just a reaction to higher costs; pricing power is a central part of the business model in the luxury segment.<\/p>\n\n\n\n

Affluent clientele in the U.S.<\/h3>\n\n\n\n

Industry giant LVMH has already raised prices on other luxury goods as well. In the key fashion and leather goods segment, higher prices contributed about two percentage points to growth in the first quarter. This shows that the group can continue to monetize its brand power. However, the days when rising prices were almost automatically accompanied by rising sales volumes seem to be over. The luxury market is no longer moving in lockstep; instead, it is diverging regionally. While China \u2013 the growth engine of the past two decades \u2013 continues to grapple with deflation, a real estate crisis, and subdued consumer sentiment, the U.S. is coming more into focus. There, the tech and AI boom is creating new wealth and driving robust demand from affluent customers. It is precisely this customer group that luxury conglomerates now want to attract more strongly. Fashion shows in New York and Los Angeles, new boutiques in traditional metropolises as well as in affluent secondary cities send a clear message: the U.S. luxury market is being reshaped. In 2025, North America took the lead in global luxury store openings for the first time. This is no coincidence. Relative to the number of very wealthy consumers, the U.S. is still considered less tapped than China. This presents an opportunity for LVMH. Weaker tourist flows in Europe and the sluggish recovery in China can thus be at least partially offset by stronger local demand overseas.<\/p>\n\n\n\n

A Mixed Start to the Year <\/h3>\n\n\n\n

But the situation isn\u2019t quite that simple. While demand remains resilient in the U.S. and parts of Asia, Europe and the Middle East are suffering not only from fewer tourists but also from geopolitical tensions. The war in Iran, in particular, had a noticeable impact on LVMH in the first quarter. Revenue fell by 6% to EUR 19.1 billion, though organic growth still came in at 1%. According to the company, the conflict in the Middle East cost it at least one percentage point of growth. Since the region is a highly profitable market for LVMH, this weakness weighs particularly heavily. <\/p>\n\n\n\n

Operationally, the picture was mixed. The core fashion and leather goods business, which includes Louis Vuitton and Dior, declined by 2% on an organic basis. Louis Vuitton performed relatively well, while Dior improved compared to the previous quarter but still fell short of expectations. And while perfumes and cosmetics stagnated, wines and spirits \u2013 which grew organically by 5% \u2013 as well as watches and jewelry \u2013 up 7% \u2013 performed better. Tiffany and Bvlgari, in particular, provided a boost here. Regionally, the divergence was even more pronounced. Europe was disappointing, as was Japan, but the U.S. held up well with a 3% increase, while Asia (excluding Japan) grew by 7%, performing significantly better than expected. This is an important point for investors: If China does indeed find a bottom and U.S. demand remains stable, LVMH could return to a moderate recovery path sooner than expected.<\/p>\n\n\n\n

Have we hit rock bottom?<\/h3>\n\n\n\n

This is likely to be the focus of attention when the second-quarter results are released. Following a mixed start to the year, some analysts expect organic growth to pick up slightly to around 2%. While that wouldn\u2019t yet mark a decisive turnaround, it would be a sign that the bottom is getting closer. Another key factor is whether the headwinds from the Middle East will ease and whether Dior will continue to make progress under new creative leadership. The recent sale of Marc Jacobs to WHP Global and G-III Group also shows that LVMH is streamlining its portfolio and focusing more strongly on more profitable core brands. <\/p>\n\n\n\n

A great deal of skepticism is already priced into the stock. The stock has lost significant ground this year and is now attempting to turn upward. In terms of valuation, LVMH is far from its previous highs. Analysts are also optimistic: the average price target is EUR 581.50, which is about 18% above the recent price level. Nevertheless, the risks should not be underestimated; 2026 remains a transitional year for LVMH. But that is precisely where the opportunity lies: If the second quarter shows that demand is not slipping further and pricing power remains intact, the stock could extend its recovery. <\/p>\n\n\n\n

Investment solutions<\/strong><\/h3>\n\n\n\n

Risk-tolerant investors can capitalize on a potential comeback with long leveraged products. Keep in mind: The higher the leverage, the greater the impact\u2014not only of price gains but also of setbacks. Traders need a lot of courage when trading the Long Mini Future MMCBTT<\/a><\/strong> from Leonteq. The product has a leverage of 6.8, and the knock-out price is EUR 417.8993 \u2013 which is just 13.0% above the current level. The structurally identical product USLBVU<\/a><\/strong> from USB, which is structurally identical, offers significantly more downside headroom for the underlying asset. The stop-loss is set at EUR 365.0322, just under a quarter of the way down. The leverage is lower at 34.0.<\/p>\n\n\n\n

For conservative investors, the Barrier Reverse Convertible is a good choice RMCABV<\/a><\/strong> from Bank Vontobel is a good option. The product currently offers a potential return of 15.8% per annum, with a solid risk buffer of 25%. The term ends on March 5, 2027.<\/p>\n\n\n\n

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LVMH is one of the most promising turnaround candidates in the European luxury sector. The upcoming second-quarter results could support its comeback. <\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"footnotes":""},"categories":[222],"tags":[],"class_list":["post-1446305","post","type-post","status-publish","format-standard","hentry","category-trading-desk-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1446305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/comments?post=1446305"}],"version-history":[{"count":5,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1446305\/revisions"}],"predecessor-version":[{"id":1446311,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1446305\/revisions\/1446311"}],"wp:attachment":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/media?parent=1446305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/categories?post=1446305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/tags?post=1446305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}