On Wednesday, UBS reiterated its Neutral rating on LVMH Moet Hennessy Louis Vuitton SE (MC:FP) (OTC: OTC:LVMUY), maintaining its price target at €849.00. The confirmation follows LVMH's first-quarter sales report, which was released after market close on Tuesday, revealing figures that aligned closely with market projections. The sales totaled €20,694 million, a slight 2% decrease compared to consensus but a 1% increase from UBS's estimates.
The company's largest segment, Fashion & Leather Goods (F&LG), matched expectations with a 2% organic sales growth (OSG).
Management's commentary did not provide a definitive outlook on the segment's performance, noting only that March's results were consistent with the average for the quarter. The Wines & Spirits division underperformed, with a 12% decline in sales compared to the anticipated 7%, attributed to ongoing destocking activities.
Despite a 9% decrease in LVMH's share price over the last month, UBS anticipates a potentially slight positive response from the market due to the report's alignment with expectations and the absence of any clear signs of weakening trends, which had been a concern for investors.
UBS has opted not to adjust its estimates for LVMH at this time and has chosen to maintain the current price target. The firm's stance remains neutral as it awaits indicators of a resurgence in positive earnings momentum for the luxury goods conglomerate.
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