Goldman Sachs Supercharges LVMH Stock Outlook Ahead of Q3 Earnings Blowout
Wall Street's heavyweight just placed a massive bet on luxury's crown jewel.
Goldman Sachs throws gasoline on LVMH rally
The investment bank's upgraded rating sends shockwaves through luxury markets days before earnings drop. Analysts are positioning for what could be the sector's most explosive quarterly reveal.
Why the sudden institutional frenzy?
Goldman's move signals deep conviction in LVMH's ability to defy macroeconomic headwinds. They're betting the luxury giant's diversified portfolio—from champagne to handbags—will deliver another masterclass in premium pricing power.
Q3 earnings: Make-or-break moment
All eyes now turn to the upcoming earnings report. The Street wants confirmation that luxury consumers remain bulletproof despite inflation concerns. Because nothing says 'recession-proof' like wealthy shoppers buying $5,000 handbags while central bankers panic over interest rates.
The real question isn't whether LVMH will beat expectations—it's by how much. And whether Goldman's upgrade will look brilliant or just another Wall Street hedge fund's desperate attempt to justify their fees.
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LVMH is a European fashion house known for its iconic luxury brands like Dior, Louis Vuitton, Sephora, Fendi, Bulgari, and more. The company is primarily listed on the Euronext Paris exchange but also trades over-the-counter (OTC) in the U.S.
Goldman Sachs Says Worst Is Over for LVMH
Singlehurst is confident that LVMH’s upcoming October quarterly results will show that the worst is over for its flagship Fashion & Leather Goods division, potentially signaling a turning point for the business.
For context, sales in the Fashion & Leather Goods division fell 9% at constant exchange rates in Q2, the steepest decline across all LVMH business segments. The drop reflected ongoing weak demand for luxury products amid rising prices and economic uncertainty. For Q3, Goldman expects a smaller decline of around 2%, slightly better than the market’s average forecast of a 3% drop.
Singlehurst credits the expected turnaround to an easier year-over-year comparison and a rebound in Chinese consumer demand. She also highlights LVMH’s strategic investments during the slowdown, such as the LV Beauté launch, its Formula 1 collaboration, and innovative retail concepts. These moves could attract more visitors and boost sales.
Is LVMH Stock a Good Buy?
Overall, MC stock has received a Moderate Buy rating on TipRanks, backed by a total of 18 recommendations from analysts. It includes nine Buys and nine Holds assigned in the last three months. The LVMH share price target is €555.38, which is 9.6% higher than the current trading level.
