LVMH Stock Under Pressure, Hermès Drops by 10%, European Luxury Turns Red
On Wednesday, LVMH shares fell by 1.17% to 475.80 euros, following a CAC 40 downturn of 0.63% during the session. The luxury group, having published its quarterly revenue, faced two target price adjustments this morning, while the European luxury sector turned red, with Hermès plummeting by over 10%.
LVMH Shares Decline Following Quarterly Revenue Report
The decline in LVMH shares occurs as the group unveiled a first-quarter 2026 revenue of 19.1 billion euros, down by 6% in reported figures. While organic growth stood at +1%, it conceals a negative currency impact of 7 points and the consequences of the conflict in the Middle East, estimated at about 1 point of lost growth. The Fashion and Leather Goods division, historically the driving force of the group, declined by 2% organically, while Asia showed a notable acceleration. Over three months, the stock has now fallen by 25.41%, with the annual performance remaining negative at -10.24%. The share price is significantly below its 50-day (503.55 euros) and 200-day (543.48 euros) moving averages, indicating a medium-term bearish trend. The RSI, at 48, is in a neutral zone, signaling neither buying nor selling excess at this stage. The next key event for the group is the general assembly scheduled for April 23, followed by the detachment of the 2025 dividend balance on April 30.
Price Target Adjustments Amidst Sector-Wide Pressure
This Wednesday, LBBW lowered its price target from 620 to 550 euros while maintaining a buy recommendation. DZ Bank made a similar adjustment, reducing its target from 650 to 610 euros, also with a positive outlook. At 550 euros, the most cautious target represents an upside potential of approximately 15.6% from the current price, while DZ Bank's target implies a gap of nearly 28.2%. The European luxury sector is experiencing widespread pressure this morning: on the Parisian market, Hermès International is down 10.18% and L'Oréal has decreased by 0.65%. This sector movement occurs in a context where the CAC 40 is down 0.63% in the session at 8,275 points, while the DAX remains stable (+0.05%). At Wall Street, the Dow Jones ended Tuesday's session up by 0.66% and the S&P 500 advanced by 1.18% at the close of the day.
