Jelena Sokolova

LVMH remains a top pick despite the 28% share price decline this year because the company has exceptional quality of business, prominent brands like Louis Vuitton, a massive communication budget above peers, and long-term fashion and leather goods growth that has doubled the luxury industry average. Current weakness reflects difficult post-pandemic comparisons and a luxury downturn that typically lasts about three years. Early signs of recovery are appearing, driven by the US market, easier comparisons, potential Chinese consumer resumption, and a shift toward hard luxury.