LVMH stock stabilizes at €653 amid threats of renewed champagne strikes

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LVMH stock stabilizes

Highlights

LVMH stock remains stable at €653 despite fresh strike threats from the CGT union targeting its champagne houses.
The labor dispute over bonus payments raises short-term risks to the wine and spirits segment.
Technical indicators show continued strength, but further escalation could cap upside ahead of Q4 earnings.

The current risk narrative centers on a labor dispute within LVMH’s champagne business. The CGT union announced further strikes at the company’s prestigious Moët & Chandon and Veuve Clicquot maisons, calling for at least a three-hour walkout. The unrest stems from management’s decision to replace the typical end-of-year bonus structure with a one-off €1,000 payment, which union leaders labeled insufficient given the group's strong financial performance.

While the protests have so far remained localized, the timing is significant. The champagne and spirits unit contributes materially to group earnings, especially in the winter quarter, which includes peak holiday sales. Prolonged or expanded strike activity could affect both production and shipments, adding downside pressure in the current quarter.

LVMH has not publicly responded to the latest strike threat, though internal negotiations are said to be ongoing. Investors are closely monitoring the situation, particularly after similar labor actions in France’s luxury and transport sectors gained traction in recent months.

Uptrend holds but upside is capped near €690

From a technical perspective, LVMH is showing moderate but steady strength. The current price of €653.50 places the stock within a broader upward channel that began forming in October 2025, following a rebound from lows near €585. Recent price action suggests buyers remain in control, though bullish momentum has faded slightly.

Key support lies in the €620–€630 region, a zone tested multiple times in December. A decisive break below this would likely trigger a retest of the 200-day moving average, which now sits around €610. Conversely, the nearest resistance band appears between €685 and €690. This level served as a ceiling twice last year, and a break above it would signal a renewed push toward the all-time highs of €901 reached in 2023.

LVMH stock price dynamics (November 2025 - January 2025). Source: TradingView.

Moving averages remain supportive: the 50-day EMA is trending above the 200-day, reinforcing the continuation of the uptrend. The Relative Strength Index (RSI) currently sits near 54, suggesting that the stock is in neutral territory—neither overbought nor oversold. Volume has been steady, though slightly below average in the past week, indicating that traders are watching for catalysts before taking larger directional positions.

Cautiously bullish with resistance near €690

In the short term, LVMH’s trajectory will depend on how the company manages the labor tensions and whether macro sentiment improves. A bullish outcome—successful resolution of strikes and stable consumer demand—could lift the stock back toward €690–€700 in the coming 4–6 weeks. This scenario would also be supported by a positive Q4 earnings surprise, particularly in the Fashion & Leather Goods segment, which remains the group's growth engine.

A neutral case, where labor issues drag on but do not escalate, would likely keep the stock rangebound between €630 and €680, as investors await clarity during the next earnings cycle. Under this scenario, technical traders may find opportunities in short-term swings, but institutional buyers are likely to remain on the sidelines until labor stability returns.

LVMH begins 2026 with continued executive reshuffling to support its long-term strategy of leadership renewal. Amandine Ohayon, former CEO of Stella McCartney, has been appointed CEO of Givenchy.

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