LVMH Shares Plunge 40% This Year as Asian and U.S. Demand Weakens

LVMH Moët Hennessy shares have fallen 40% year to date, reaching a six-year low. Demand has weakened in key Asian and U.S. markets.

The September sell-off erased 11% of the French luxury group’s market value. Shoppers in mainland China and other western retail hubs are pulling back on spending.

LVMH now trades at a forward non-GAAP price-to-earnings multiple of 15.8 times. Its five-year average is 22.4 times.

Valuations across the luxury sector have also compressed amid high interest rates, inflation and geopolitical uncertainty, which are weighing on discretionary spending. Asia excluding Japan accounts for 54% of LVMH’s revenue, leaving the company particularly exposed to the region’s slowdown.