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Trader's Diary

Economic calendar

Jun
2025
Definition of terms:
Earnings
IPOs
Splits
Week 25

Positive Perspectives from LVMH's Latest Quarterly Earnings

Date: 17.4.2024

Today, after reviewing LVMH's first quarter earnings report, I was reassured about its investment strategy, particularly in the luxury goods sector. Despite the global, economic slowdown that has clearly affected the luxury goods market, LVMH - home to prestigious brands such as Louis Vuitton and Dior - has demonstrated its resilience and ability to adapt to changing market dynamics. This is key for me as an investor seeking stability in these turbulent times.

Analysing sales performance amid challenges

 

LVMH reported moderate organic growth of 3% in the quarter compared to the same quarter in 2023, with sales of €20.69 billion. Although this represents a slowdown compared to the explosive growth recorded in previous years, the 2% decline, largely attributable to currency effects, does not diminish the underlying strength of LVMH's business model.

 

The slight decline in Asia, where sales fell by 6%, initially seemed worrying. However, knowing that this decline is partially offset by growth in Europe and the United States, where sales grew 2%, adds a layer of geographic diversification to LVMH's revenue streams which is key to managing risk in my portfolio.

 

Strategic management insights

 

Jean-Jacques Guiony's comments during the analyst call further boosted my confidence. The CFO's satisfaction with Chinese demand, particularly the 10% increase in purchases of Louis Vuitton products by Chinese buyers globally, is a strong indicator that the brand retains its appeal among consumers in the target group. This is key, as Chinese consumers have historically been the main driver of growth in the luxury sector.

 

Long-term growth prospects

 

The luxury market's adjustment to a slower growth environment is not necessarily a negative, but a return to normality following the post-pandemic surge in sales. LVMH's ability to maintain steady sales growth in such an environment, together with strategic price adjustments to match inflationary pressures, is a testament to its strong market position and operational excellence. This is consistent with my investment philosophy, favouring companies that can manage short-term challenges while having the strategic foresight to take advantage of long-term opportunities.

 

A diversified portfolio as a reserve

 

LVMH's diversified portfolio, which encompasses various segments including spirits, jewellery, cosmetics, and fashion, further reduces the risk and increases the attractiveness of holding its shares in my investment portfolio. Continued strength in the US market and a gradual improvement from aspirational customers suggest a recovery in the consumer base that could lead to higher results as market conditions gradually improve.

 

Conclusion

 

Overall, LVMH's first quarter results have had a positive impact on my view of investment within the luxury goods sector. The company's solid fundamentals and savvy management provide a solid foundation for growth, especially as global economic conditions stabilize. The resilience demonstrated by LVMH reassures me of the strength of my current holdings and encourages me to maintain, if not increase, my investments as the market adjusts to the new normal. In a volatile investment environment, such confirmations of strategy are invaluable.

Date: 26.2.2025
Super Micro Averts the Threat of Delisting and Rises Sharply

After analyzing the quarterly results of Super Micro Computer Inc. (NASDAQ: SMCI), I noticed a sharp increase in the price of their shares. In extended trading, they rose by about 22% after the company filed its late financial statements on time to meet the Nasdaq exchange's requirements to remain in the index. The move removed the threat of delisting that hung over the firm due to financial reporting issues and the loss of an auditor in 2023. At the same time, Super Micro announced that the new BDO auditor confirmed the compliance of the results with GAAP accounting principles, which managed to stabilize the situation. What awaits us next?

Date: 19.2.2025
Intel and Speculation About a Possible Company Split

Today, I noticed that Intel's stock has risen by nearly 50% from its February low, clearly indicating that the price is reacting to ongoing speculation about a potential company split.* Intel has been struggling with the loss of its technological edge and market share, with its performance lagging behind competitors like Nvidia, which dominates the AI chip segment. Ongoing negotiations between TSMC, Broadcom, and the Silver Lake investment group suggest that Intel's leadership is actively exploring ways to regain its market position and restore investor confidence.

Date: 12.2.2025
Alibaba and Apple Forge AI Partnership in China

This morning, I noticed a sharp increase in Alibaba shares – almost 8%1 since last week. The stock thus continues the bullish trend that we last saw in September last year.* I immediately started to find out what was behind it, and I came across an interesting piece of news. Apple is reportedly working with Alibaba to develop AI features for iPhones in China. This news immediately caught my attention, so I started looking for ways to benefit from it.

Date: 5.2.2025
AMD Slips After Earnings Report

For us investors following the semiconductor sector, today was very significant. AMD announced its results for the fourth quarter of 2024, beating expectations in terms of both sales and profit. Nevertheless, the shares fell by more than 9% after the end of regular trading hours.* This decline subsequently raised questions that I also dealt with. Is this an overreaction of the market, or is it a legitimate warning sign?

Date: 29.1.2025
ASML Exceeds Expectations: A Buying Opportunity?

Today's trading day was very interesting for me as I focused on the results of ASML, a leading player in chip manufacturing equipment, which published its results for the fourth quarter. ASML reported orders worth €7.09 billion, well above expectations. This order intake is a significant indicator that the demand for advanced equipment, driven by the growth of the AI field, remains strong.

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