LVMUY, traded on the PNK exchange, is a part of LVMH Moët Hennessy-Louis Vuitton, the world's largest luxury group. The company is a leader in the luxury industry, offering a wide range of products such as fashion and leather goods, wines and spirits, jewelry, and cosmetics. Despite its strong market position, LVMUY's stock recently experienced a decline of over 2%.
On January 28, 2025, LVMUY reported earnings per share of $2.61, slightly surpassing the estimated $2.60. The company also reported a revenue of approximately $44.83 billion, significantly exceeding the estimated $20.99 billion. However, the stock's decline followed the release of these results, contrasting with the S&P 500's nearly 1% rise, as highlighted by the company's flat fourth-quarter revenue of 23.9 billion euros ($25.1 billion).
For the full year of 2024, LVMH earned approximately 84.7 billion euros ($88.8 billion), marking a 2% decrease from 2023. The fashion and leather goods segment, LVMH's largest product category, saw a 3% decline, generating slightly over 41 billion euros ($43 billion) for the year. The wines and spirits category was the most affected, with an 11% drop to less than 5.8 billion euros ($6.1 billion).
Despite these challenges, LVMUY maintains a price-to-earnings (P/E) ratio of approximately 5.33, indicating the price investors are willing to pay for each dollar of earnings. The company's price-to-sales ratio stands at about 4.34, suggesting its market value relative to sales. Additionally, the enterprise value to sales ratio is around 4.74, reflecting the company's total valuation compared to its sales.
LVMUY's financial health is further supported by an earnings yield of about 18.78%, which indicates the percentage of each dollar invested that was earned by the company. The debt-to-equity ratio is approximately 0.63, suggesting a moderate level of debt relative to equity. Lastly, the current ratio is about 1.38, indicating the company's ability to cover its short-term liabilities with its short-term assets.
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