Key Takeaways
- LVMH shares are down 27% so far in 2026 amid a wider luxury sector slump.
- The French luxury giant’s second quarter results signaled an uptick in demand, particularly among US shoppers.
- The wide-moat stock looks undervalued, according to Morningstar senior equity analyst Jelena Sokolova.
Could fortunes be turning at French luxury conglomerate LVMH?
LVMH MC has been among the worst performing luxury stocks in 2026, shedding 27% so far this year. Once Europe’s most valuable company, LVMH shares are now 50% off their 2023 highs, as luxury goods began to fall out of favor with wealthy consumers following a pandemic-era splurge.
But an uptick in sales for the Louis Vuitton, Bulgari and Givenchy owner could spell a welcome revival for the luxury bellwether—and the sector at large.
LVMH’s Q2 Earnings Show Sales Uptick
LVMH’s organic sales rose 3% in the second quarter, as its key fashion and leather goods division turned positive for the first time in two years.
Demand was driven by US shoppers, including those newly flush with cash thanks to the AI boom. Chinese and European sales were flat, stabilizing from prior weakness, even as the Iran war continued to dampen tourist spending.
LVMH’s top brand Louis Vuitton grew in line with the group’s wider fashion segment, as Dior rebounded, gaining momentum under its new creative director. Meanwhile, the group’s watches and jewelry division remained a star in the portfolio amid the continued allure of Tiffany and Bulgari bling.
Morningstar senior equity analyst Jelena Sokolova said the latest results indicate a promising shift for the luxury powerhouse, even as it continues to lag major peers.
Can LVMH Shares Return to Prior Highs?
With a market cap of EUR 230 billion, LVMH’s stock is currently trading at around EUR 470 a share. That’s around a 25% discount to Morningstar’s fair value estimate of EUR 620.
LVMH remains Sokolova’s top pick in the sector, given its “attractive valuation, brand strength, scale and financial flexibility.”
She adds that the company looks well positioned to return to industry outperformance in the longer term, suggesting now could be a good time to pick up a luxury bargain.
