LVMH stock holds at €626 amid strikes in wine and spirits unit

Highlights

LVMH stock remains stable at €626 despite renewed strikes at its Moët Hennessy Champagne houses over year-end bonus cuts.
The labor unrest raises short-term risks for the wine and spirits division during a key holiday sales period.
Technical indicators remain bullish, but further disruption could cap near-term upside.

Workers at Moët & Chandon and Veuve Clicquot, two iconic Champagne houses under the Moët Hennessy division, called for renewed strikes and protests over disputes on year-end bonuses. This follows an initial wave of labor action in early December as workers voiced frustration over reduced bonuses amid declining profits in the wine and spirits segment.

The strikes are being organized by the CGT union, which accused LVMH of cutting staff incentives despite the group’s strong financial performance in other segments. Moët Hennessy, though only one division within the conglomerate, holds high brand visibility and represents a meaningful contributor to LVMH’s EBIT margin due to the premium pricing of its products. While the impact of the strike has not yet disrupted global distribution, prolonged labor action could affect bottling and holiday season logistics — a critical period for Champagne sales.

This labor unrest coincides with broader pressures in the luxury beverages space. Moët Hennessy’s performance has lagged behind that of the Fashion & Leather Goods segment, with management earlier noting volume softness in traditional Champagne markets. Should the dispute intensify or spread to other production units, margin pressures may increase. Furthermore, investor concerns could rise if the unrest is perceived as symptomatic of broader discontent within the group.

Technical rebound gains traction amid renewed luxury optimism

This recovery follows a challenging first half of 2025 in which luxury stocks faced pressure from slowing Chinese demand, rising input costs, and broad market risk aversion. LVMH has now firmly reclaimed its 50-day moving average and is holding above its 100-day moving average, both technically constructive signals.

Recent price action shows a steady climb from early October lows around €490–€500 to the current €620+ levels, breaking past minor resistance near €600. The Relative Strength Index (RSI) remains below overbought territory, near 65, indicating room for further upside in the short term. However, resistance is expected at the €640–€650 range, where sellers previously emerged in Q2 2025. On the downside, immediate support lies around €605, with stronger technical support near €580, the breakout level from late November.

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

On international tickers such as LVMHF (OTC US), the price mirrors a similar trajectory, currently trading around $722. Volumes across exchanges have shown healthy recovery in recent weeks, suggesting improving institutional confidence. Given the stock’s global nature and high correlation with discretionary consumer sentiment, the current price behavior reflects a broader optimism about luxury demand normalization into 2026.

Scenarios and short-term price outlook

LVMH’s fundamental outlook remains intact, supported by global recovery in high-end discretionary spending and strong demand for its fashion brands like Louis Vuitton, Dior, and Celine. As long as labor disputes remain localized and temporary, the group’s earnings trajectory should not be significantly derailed. A resolution of the Moët Hennessy bonus dispute before year-end would likely lift uncertainty and allow shares to extend toward €645–€660 in early 2026.

However, if strikes persist into Q1 2026 or disrupt Champagne shipments during the peak holiday window, LVMH may face modest revenue headwinds. In this scenario, short-term correction toward €590–€600 is plausible. Investors will closely watch for any management commentary or updates on the resolution process.

LVMH faces a legal challenge from Hermès heir Nicolas Puech, who alleges the misappropriation of €14 billion worth of Hermès shares over a decade ago. The company has firmly denied the claims, stating it holds no hidden stake and is prepared to defend itself legally.

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