LVMH's price target has been lowered by UBS to €629 from €660. UBS maintains a Neutral recommendation after disappointing Q3 2024 sales figures.
LVMH reported a significant decline in organic sales growth, particularly in its Fashion & Leather Goods division. As a result, UBS has revised its earnings per share estimates down by 3% to 4% for the years 2024, 2025, and 2026.
In Q3, LVMH's group organic sales growth fell by 3%, which was below consensus expectations and UBS's own estimates. Total group sales for the quarter were €19,076 million, a 5% decrease compared to the consensus forecast of €20,012 million and 2% lower than UBS's estimate of €19,561 million.
The disappointing performance highlights ongoing challenges within the luxury sector.