LVMH stock down 1% despite denial of Hermès share misappropriation

Highlights

LVMH stock is trading above €600, showing resilience despite a 1% dip and legal pressure from a Hermès share misappropriation lawsuit.
Technical indicators remain bullish, with strong support at €600–€610 and potential upside toward €645 if momentum continues.
The company has firmly denied the allegations, and market reaction so far has been limited.

The technical backdrop is now competing with a rising legal controversy. Nicolas Puech, an heir to the Hermès fortune and a former board member, has filed a lawsuit in Switzerland alleging that LVMH, along with its chairman Bernard Arnault, misappropriated approximately 6 million Hermès shares over a decade ago. These shares are now estimated to be worth over €14 billion. The lawsuit claims that the shares were transferred without Puech’s knowledge or authorization, potentially through manipulation of fiduciary holdings.

LVMH issued a direct rebuttal, stating it has “never misappropriated shares belonging to Mr. Puech” and that it does not currently hold any hidden stake in Hermès. The group also pushed back against what it described as a “coordinated press campaign”, underscoring its willingness to legally defend its position.

While the legal process may take months to unfold, the timing is sensitive. LVMH is the world’s largest luxury conglomerate, with a carefully cultivated reputation. Any threat to its corporate governance or suggestion of opaque asset handling could weigh on investor sentiment — particularly among ESG-focused funds and institutions with strict compliance mandates.

Strengthening technical base supports renewed upward momentum

Support has clearly formed around the €600–€610 zone, which aligns with the rising 50-day moving average. This moving average has recently crossed above the 100-day moving average, confirming a bullish medium-term signal. The Relative Strength Index (RSI) sits near 58, indicating neither overbought nor oversold conditions — a neutral signal that allows room for another leg upward if buying resumes.

Short-term resistance is evident at €625, with the next upside level seen around €640–€645, which coincides with price action from April and July 2023. The broader trend also remains constructive, as LVMH has consistently traded above its 200-day moving average since mid-November, showing a structural rebound after a difficult first half of 2023. Provided the stock stays above €600 on a closing basis, the bullish momentum should continue to attract institutional flows.

LVMH stock price dynamics (October 2025 - December 2025). Source: TradingView

Additionally, recent volume patterns support the ongoing bullish bias. Trading volumes have remained steady during the latest upward leg, with occasional spikes on green days, suggesting accumulation rather than distribution. This behavior indicates that buyers are stepping in on pullbacks, reinforcing the €600–€610 support zone. The absence of heavy selling pressure on down days also suggests that profit-taking remains limited, a sign that investors are holding positions in anticipation of further upside into year-end. If volumes expand on a breakout above €625, it could signal the start of a new rally leg toward €645 and beyond.

€645 upside if lawsuit fades, €585 downside on renewed pressure

The base case assumes continued consolidation between €610 and €630 as the market digests the legal developments and awaits new catalysts — such as year-end luxury sales data or further legal filings. Assuming the €600 level holds, the next few weeks may see the stock drift higher toward €640, driven by technical momentum and a softening euro supporting export margins.

The bullish case envisions a scenario in which LVMH is able to fully dismiss or discredit the lawsuit — either via court rulings or a successful PR counteroffensive — allowing investor confidence to accelerate and potentially driving the share price toward €645–€650. Additional upside could come from strong Q4 holiday demand in the U.S. and China, two of LVMH’s most important markets.

Investor confidence in LVMH has improved after Deutsche Bank reaffirmed it as a “top pick” and raised its 2026 price target to €715, citing a rebound in high-end discretionary spending. The bank highlighted LVMH’s strong positioning across luxury categories and signaled a broader sector recovery by also upgrading Richemont.

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