LVMH Shares Plunge 27% in Three Months, Breaking Key Support
LVMH closed the trading session on Friday, March 20, down by 0.92% at 456.00 euros, in a notably bearish Parisian market. The stock of the global luxury leader has now accumulated a decline of nearly 8% over the week and more than 27% over three months, amid geopolitical tensions and increased nervousness in financial markets.
Critical Support Level Breached
Closing at 456.00 euros, LVMH broke below the support threshold of 460.25 euros, the previous day's price. This break occurs as the stock is significantly below its 50-day and 200-day moving averages, positioned at 545.80 euros and 542.44 euros respectively, indicating a firmly established downward trend over several weeks. The Relative Strength Index (RSI) is at 16, an extremely low level signaling a pronounced oversold condition. Historically, such a low RSI could precede technical stabilization phases, but it primarily reflects the extent of selling pressure the stock has faced in recent weeks. Over the year, the stock has fallen by 25.32%, erasing a significant portion of its previous value creation. The session was marked by a generalized retreat of the CAC 40, which fell by 1.40% to 7,698.43 points. In the luxury sector, Hermès International dropped by 3.93%, while L'Oréal managed a gain of 0.77%, showing divergent paths within the Parisian market.
Overall Market Decline in a Deteriorating Macroeconomic Environment
The decline across all listed values occurs in a deteriorating macroeconomic environment due to a sharp rise in oil prices. Brent crude surpassed $107 this Friday morning, up 50% since late February, due to the ongoing conflict in the Middle East. This surge fuels fears of a new inflationary shock that could impact global consumption, a critical factor for the luxury sector which closely depends on the purchasing power of affluent households worldwide. The VIX, a measure of implied volatility, stood at 25.09 points in its last update on March 18, up 12.16% from the previous session, confirming a high-tension climate in financial markets. The next key dates in LVMH's financial calendar are the general assembly scheduled for April 23, 2026, followed by the detachment of the balance of the dividend for the fiscal year 2025, scheduled for April 30. These milestones will be significant for shareholders in a context where the stock has lost more than a quarter of its value in three months.
