Luxury in the spotlight as LVMH reports positive results; Cucinelli soars in Milan

(Il Sole 24 Ore Radiocor) - Milan, 28 July - European luxury brands are in the spotlight on the stock market, after LVMH kicked off the quarterly results season for the major fashion houses. However, shares in the French giant – whose portfolio includes brands such as Louis Vuitton and Dior – are down in Paris, whilst analysts scrutinise the mixed signals emerging from the financial results. At the same time, however, Kering and Essilux are gaining ground on the CAC, and will be put to the test this evening. Buying interest is also boosting Hermès, and Burberry in London. Things are going well in Milan for Brunello Cucinelli , Ferrari and Salvatore Ferragamo .

Turning our attention to LVMH, the company led by Bernard Arnault closed the first half of the year with a stable net profit of 37 billion euros. Turnover stood at 38.64 billion, down 3 per cent on a reported basis (+2 per cent on an organic basis). Profit from recurring operations stood at €8.7 billion (€9 billion in the first half of 2025), representing an operating margin of 22.5 per cent, broadly in line with a year ago. Geographically, “growth accelerated in the US, leading to a strong first half of the year,” LVMH states in a press release. “Asia (excluding Japan) recorded strong growth, confirming the improvement in trends observed since the second half of 2025.” For the full year 2026, “whilst continuing to pay the utmost attention to margins, we approach the second half of the year with renewed confidence in the long-term potential of our Maisons and in the commitment of our people,” said Arnault.

Analysts found that the figures from the luxury giant were generally above expectations, although not entirely convincing. According to Banca Akros, they ‘highlight an improvement in underlying trends across all business sectors’, but at the same time show ‘a failure to meet targets in the Fashion and Leather Goods division’. Dior’s strong performance, “the sequential improvement in key segments, the growth in Wine &Spirits segment exceeding consensus (+5% at constant exchange rates compared with the consensus of -2%) and the disciplined management of margins were encouraging”, writes Deutsche Bank, as was “the first-half margin exceeding estimates”. However, according to the analysts, “the lack of sequential improvement in the Chinese market”, with local and tourist demand remaining stable compared with the first quarter, and in Asia, offsets the positive aspects for investors.

Equita, on the other hand, welcomes the “surprise on margins and the confident tone of the management”. However, it maintains a ‘hold’ rating on the stock with a target price of 550 euros, due to ‘performance that remains below the sector average and pending greater clarity on growth prospects for the second half of 2026 and 2027’.

Barclays, on the other hand, takes a more positive view, raising its target price for LVMH to 620 euros (from 600) with an ‘overweight’ rating, in light of better-than-expected results in the jewellery and spirits sectors.