Prada buys Versace from Capri for approximately $1.36 billion:
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It doesn’t look like things went well for Capri last year, or even now…
But this is how M&A deals should go. Buy when the seller is in a tight spot.
From Yahoo Finance I found an old quote from LVMH’s North America director about Prada:
“The Bertellis have long aspired to build an LVMH-like group in Italy,” Pauline Brown, former LVMH chair of North America, told Yahoo Finance via email. “The acquisition of Versace brings their portfolio up to seven. As I see it, it’s a smart strategy, as it gives the Prada Group more breadth and depth of Italian brands and a stronger position within the global luxury sector.”
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LVMH’s revenue fell short of expectations in the early part of the year, as weakening sales of fashion and leather goods, as well as alcohol, weighed on the results. In the United States, demand for Sephora and beauty products decreased, and sales in Asia significantly declined.
The company estimates that trade tensions and the economic outlook will complicate operations in the near future.
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At least by this metric, LVMH cannot be considered expensive. 
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LVMH
Definitely looks cheap again, and for a long-term hold, there might be very tasty buying opportunities!
However, there is something behind the cheapness, and some reasons can also be found in the trend-like decline in margins over the last few years. Also, the dip in revenue last year might not necessarily excite investors. It’s good to note, however, that these are likely more related to macroeconomics than the company’s own performance.
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Also, LVMH lost its position as the world’s most valuable luxury brand to Hermès following an “unexpected” sales decline.
The company’s stock dropped considerably as first-quarter sales fell short of analyst expectations. Wines and spirits suffered particularly… while Hermès’s value rose slightly, surpassing LVMH in market capitalization.
"Key Points
- Shares of LVMH plunged 7.8% on Tuesday after the world’s largest luxury group posted an unexpected decline in first-quarter sales.
- Sales were “overall below the most conservative buyside expectations,” Citi analysts said, with wines and spirits suffering the sharpest decline."
EDIT:
I’ll put this here as a reminder:
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Hermès Q1 out. The monobrand strategy is bearing fruit, even if it’s riskier.
It’s interesting that watches are almost 10% down 
For LVMH, however, the segment grew by +1%, even though their Q1 was otherwise worse. Awaiting Richemont’s comments.
Source: Quatr on X
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According to FinChat’s tweet and the chart within it, LVMH’s fashion and leather goods business has suffered significantly over the past two years due to, among other things, a weak consumer environment, which has resulted in a decline in revenue. On the other hand, during the same period, Hermès has continued strong growth without signs of slowing down - its revenue increased by 28 percent over the period, while LVMH’s corresponding segment decreased by 6 percentage points in the same time.
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Below is a table on Hermes’ sales development geographically and by product area. The focus on China (in the table, Asia-Pacific excl. Japan) is significant, and development there is weaker. But otherwise, those growth figures, for example in Europe, are absolutely stunning compared to, for example, LVMH. Quality comes at a price (I’m talking about the stock), and ultra-luxury is a world of its own
The valuation of the stock is truly like the price of a Birkin itself 
TTM figures:
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Have LVMH’s owners bought their shares via Xetra? Otherwise, you can’t get French shares from Nordnet except by calling a broker.
I have been cautiously looking at the company. Currently, I’m mainly interested in the valuation (or why it’s cheaper than some comparables (the answer is quite obvious)).
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Yes, LVMH and Dior are available for purchase on Nordnet via Xetra. Transaction costs are in the same basket as German stocks. The broker probably adds another €10 on top of the trade
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Moët is not doing well. In 2019, it still generated €1B in cash flow. Now it’s burning through cash at -€1.5B per year, according to FT data.
And the effects are visible in LVMH’s overall sales growth figures:
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In this SalkunRakentaja article, it tells about Burry’s portfolio liquidation and his only stock holding, namely Estée Lauder.
Even though the company’s stock has fallen and the markets have been challenging, Estée Lauder’s revenue per share has remained stable – a characteristic that Michael Burry, as a value investor, appreciates. The company’s recent profitability issues are mainly due to high fixed costs, not from a weakening of demand or competitive position.
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Corny ass dude
Isn’t he every quarter seeking attention with some tweets and a complete overhaul of his portfolio?
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Ralph Lauren posted a strong quarter. The company emphasized the brand’s timelessness and quality, which have supported it even during uncertain times.
Management highlighted the successful execution of its strategy and emphasized the continuous building of sustainable growth and long-term value creation.
This year, the company is focusing on driving growth, overall adaptability, and financial efficiency.
https://x.com/Earnings_Time/status/1925525711063834645
Company Materials
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Marketing budget: available
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LVMH has still depreciated quite a lot, and has it depreciated a bit too much. Below the tweet, there is also a reply to the tweet, which contains a bit more thoughts.
https://x.com/QualityInvest5/status/1931410225342374150
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Thank you. As I understand it, the price difference between LVMH and Christian Dior has also narrowed, so that the substance discount for their ownership is no longer that much?
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Where does such a notion come from? It is still significant. In the 10-18% range, but it’s another matter whether the discount ever materializes.
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According to fundamentals, the price difference should narrow despite the holding discount, because Dior/Bernard buys LVMH shares with LVMH dividends.
One part of my investment thesis for Dior is that hypothetical future merger with LVMH. Currently, Bernard is, in a way, operating on “two fronts”:
- There is Christian Dior, Bernard’s own holding company, which holds LVMH shares as the largest owner
- There is also the family company, FINANCIERE AGACHE, shown in the picture above, which also includes Bernard’s descendants. Since Bernard’s descendants are known to eventually rise to power, this family company will likely become the primary holder.
When Bernard’s death comes, what will be done with the LVMH shares owned by Dior? The company will likely either:
- Be merged into LVMH, in which case the substance discount would be released by rewarding Dior’s owners with additional LVMH shares in proportion to the companies’ exchange ratio. The uncertainty here is that Dior’s shares would then transfer to LVMH, which can hardly own X0% of its own shares under French law.
- Or, Dior is merged into the family company, in which case the substance discount would be released by combining Dior’s and the family companies’ LVMH shares under one roof.
While waiting for that day, LVMH’s float shrinks, because:
- LVMH buys and cancels its own shares
- The family company buys LVMH shares for permanent holding
- Dior buys shares for permanent holding
- Passive index funds buy shares for permanent holding
Experts in the luxury sector know what happens when demand increases but supply does not? 
This ideal situation naturally requires that LVMH’s business continues to improve. If this declining revenue continues for another couple of years, my own position will continue to suffer significant losses
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