LVMH Stock Soars 14% After Quarterly Results Exceed Expectations

Significant Increase in Stock Price

This morning, the stock showed a 14% increase, bringing its price to 609 euros. This sharp rise is part of an upward trend that started a few weeks ago, with a cumulative gain of 8.39% over seven days and an increase of 26.58% over three months. However, on an annual basis, the stock is still down by 4.83%, reflecting the difficulties the luxury sector has faced over several quarters. Trading volumes remain moderate, with only 0.09% of the capital traded at the opening, suggesting a still cautious reaction from investors despite the significant movement. The CAC 40, meanwhile, is up 2.37%, largely driven by LVMH's surge.

Quarterly Results Trigger Rally

The surge follows the release of the third-quarter 2025 results yesterday evening. The group reported a 1% organic growth, marking a turnaround after four consecutive quarters of decline. Quarterly sales reached 18.2 billion euros, slightly above the consensus expectations. The Fashion and Leather Goods division, which accounts for the bulk of the group's profits, saw its sales decrease by 2% organically, a notable improvement from the 9% decline recorded in the second quarter. The group also highlighted improved trends in Asia, particularly in China, where demand rebounded during the summer. Following these results, several analysts have raised their price targets. Bernstein raised its target to 700 euros from 600 euros previously, while TD Cowen adjusted it from 500 to 550 euros. These revisions reflect renewed optimism about the group's ability to benefit from a gradual recovery in demand, even though the economic context remains uncertain.

Technical Breakthrough in Stock Performance

Technically, the stock crossed its resistance threshold this morning at 610.60 euros, a level that had been a ceiling for several weeks. The stock is now significantly above its 50-day (505.33 euros) and 200-day (543.97 euros) moving averages, indicating a marked improvement in the medium and long-term trend. This configuration shows a gradual rebound from the summer's low point, reinforced by the acceleration in recent weeks. The Bollinger Bands, which measure volatility and identify phases of price expansion, had previously confined the stock's fluctuations between 491.48 euros and 570.44 euros. The breakout above this range this morning indicates a sharp acceleration in buying, characteristic of a strong reaction to a short-term catalyst. The Relative Strength Index (RSI), positioned at 58, remains in the neutral zone, suggesting that the stock is not yet in an overbought situation despite the magnitude of the movement.