LVMH investors pray for green shoots of recovery after £240billion share price rout

LVMH is under pressure to reassure investors it is on the road to recovery after losing nearly £240billion of its value in three and a half years.

The luxury giant – which owns Moet champagne, Louis Vuitton and Dior, whose designs are worn by popstar Sabrina Carpenter – was worth £400billion in April 2023 and now is worth £160billion.

It has suffered due to the end of a post-lockdown ‘revenge spending’ era that has seen even wealthy clientele more hesitant to splash cash on pricey clothes and handbags.

Shares have also fallen a third since the outbreak of war in the Middle East, making it one of the worst performing listed giants in Europe.

The war has disrupted travel to Gulf shopping hubs such as Dubai and also hit demand from tourists visiting Europe.

LVMH, which owns fashion brands including Dior, worn by popstar Sabrina Carpenter, has seen its market value fall in recent years.

Owner Bernard Arnault’s personal wealth is now around £108billion and he is no longer one of the top ten richest people in the world, according to the Bloomberg’s Billionaire Index.

His stake in the group was worth £160billion three years ago.

But investors will be hoping for signs of shoots of recovery across the group’s portfolio of brands when it updates the markets on Monday.

Jelena Sokolova, senior equity analyst at Morningstar, said all eyes will be on sales in key markets China and the US, where appetite has waned in recent years.

She added: ‘A key focus will be the fashion and leather goods division, which remains central to the company’s investment case. While the luxury sector is showing early signs of recovery, LVMH’s flagship division has yet to return to the level of outperformance investors have come to expect.’

LVMH said sales rose 3 per cent to £16.7billion in the three months to June, with momentum behind Dior collections from new creative director Jonathan Anderson.

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