• LVMH is listed on the Euronext Paris exchange under the EPA:MC ticker
• LVMH is the world’s largest luxury goods company, with over 75 brands under its ownership
• The company was founded in 1987, after the merger of Louis Vuitton and Moët Hennessy
• As of April 2023, LVMH’s market capitalization has reached EUR 425 billion - making it one of the largest publicly traded companies in the world
• LVMH generated annual revenues of over EUR 79 billion in 2022, with more than EUR 14.7 billion in earnings
• Nearly half (49%) of LVMH’s revenues come from its Fashion & Leather Goods segment while retailing accounts for 19%, Watches & Jewellery - 13%, Perfumes & Cosmetics - 10%, Wines & Spirits - 9%
• LVMH is part of the Euronext 100 and CAC 40 stock indexes
• Total assets on LVMH's balance sheet exceeded EUR 134 billion as of FY2022
• LVMH is the single largest constituent of the Euronext 100 index, accounting for over 9% of the total weight 
• LVMH's stock price is often seen as a barometer of the global luxury goods market, as the company's performance is closely tied to consumer spending on luxury items

LVMH has been one of the top performers in the European market for the past 5 years. The stock has returned over 220% over the same period. One of the main revenue drivers for the company has been the boost to the global luxury goods market after the Covid-19 pandemic. 

Once countries started lifting lockdown measures and the global economy started to reopen, consumers around the world rushed to purchase the new releases from a broad range of LVMH brands. 

LVMH is also a robust dividend stock - with a dividend yield of 1.42% and a quarterly dividend of EUR 3.00 per share.

A key factor in LVMH’s incredible stock growth is stability. The consumer demand for high-end goods has been steadily growing over the past decade and with a wide variety of brands under its name, LVMH has met the rising demand in a prime position. 

Here’s how the stock has performed over the past five years:

Before investors put their capital at risk, it is important to understand the possible opportunities and challenges that lie ahead for LVMH stock. Understanding the advantages and disadvantages of investing in LVMH can help investors be better prepared for future market movements. 

Pros

• Strong market presence - LVMH is the largest global luxury goods provider with 75 brands under its ownership. This gives the company a commanding position in the market, which is virtually unrivaled 
• Resilient business model - The luxury goods market is known to be especially resilient towards recessions and short-term market downturns, which makes LVMH one of the most stable stocks on the European market
• Strong financials - LVMH is consistently able to generate massive amounts of profit each year, which also allows the company to distribute a healthy dividend. This attracts long-term investors to the stock 
• Experienced management - LVMH is equipped with a management team with decades of experience working in the luxury goods industry, which gives the company an edge over competitors 

Cons

• High valuation - Due to its high-profile name and strong market presence, finding LVMH stock at a discount can be difficult. High valuations also limit the potential upside for new investors
• Dependence on consumer trends - The business model of LVMH is directly dependent on global consumer spending habits. When consumers tighten their budgets and cut down on leisure and luxury spending, LVMH’s bottom line could suffer 
• Exposure to geopolitical risks - LVMH operates in various countries around the world, which means that its revenue streams depend on the free flow of goods and capital between their countries of operation 

• LVMH is the largest luxury goods company in the world with a market capitalization of over EUR 425 billion and 75 luxury brands to its name 
• LVMH owns and operates the likes of Louis Vuitton, Givenchy, Christian Dior, Loro Piana, Tiffany’s & Co., Loewe, etc
• LVMH’s stock has returned over 220% over the course of five years 
• The company pays quarterly dividends of EUR 3.00 per share 
• LVMH accounts for nearly half of the global luxury personal goods market, which in turn, is half of LVMH’s business