Goldman Sachs Bullish on LVMH Despite Recent Stock Decline

Goldman Sachs has initiated coverage of LVMH with a buy rating and a 500-euro price target, marking a rare optimistic outlook for the stock, which has declined significantly this year. The investment bank's forecast hinges on a projected recovery in LVMH's fashion and leather goods division by 2027, a segment critical to the company's overall earnings. Currently, LVMH shares are trading at 381.90 euros, just above a 52-week low of 376.80 euros, highlighting the deep pessimism surrounding the stock.

The recent share price slide coincides with potential leadership changes within the Arnault family. Reports suggest the family is considering restructuring the group's leadership, including elevating deputy CEO Stéphane Bianchi to corporate officer status. Additionally, Christian Dior SE announced plans to merge holding companies Financière Agache and Agache into a single entity, simplifying the control structure over LVMH.

Broader market concerns, particularly around China's economic slowdown, have also weighed on LVMH's outlook. Bernstein recently cut its revenue forecasts for the group, citing persistent consumer caution in key markets. Despite these challenges, LVMH is pushing ahead with commercial initiatives, such as a partnership with Marks & Spencer to expand Sephora's presence in the UK.

Investors will gain further clarity on LVMH's performance when the company reports its third-quarter 2026 revenue on October 12. The upcoming results will provide insights into how deeply consumer retrenchment has impacted the luxury giant. Meanwhile, LVMH's brand momentum continues, with Dior unveiling its spring/summer 2027 collection and the company filing share transaction notices with the French financial markets regulator.