LVMH stock jumps 3.4% as Euronext expands single-stock options

Highlights

- LVMH stock rebounded 3.4% to €521.10, supported by technical recovery after sliding from July highs.

- Internal restructuring, particularly in Wines & Spirits, remains the main challenge while other divisions show resilience.

- Euronext’s expansion of single-stock options may enhance liquidity and trading activity in LVMH shares.

The current rebound is notable as it comes close to the 50-day simple moving average (SMA) of approximately €523, while still sitting below the 200-day SMA, which hovers near €537. A breakout above both these averages would indicate renewed bullish momentum; however, until that point, LVMH remains technically neutral with a slight bearish bias.

Support levels are currently established near €505, which acted as a price floor in mid-August, while resistance is observed around €530. A breach above €530 would open the door for a retest of the €550–€560 range, last seen in Q2 2025. RSI indicators on daily charts suggest the stock is not overbought, currently reading close to 52, implying room for further upside if momentum continues. The MACD remains in slight negative divergence but is narrowing, indicating potential for a positive crossover should the current rally persist.

LVMH stock price dynamics (June 2025 - September 2025). Source: TradingView

Fundamentally, LVMH maintains strong profitability metrics, with return on equity (ROE) of approximately 17% and a profit margin of 13.3%. Levered free cash flow stands at a robust €13.2 billion, reinforcing its ability to navigate operational pressures and fund ongoing expansion. However, recent performance has decoupled from fundamentals due to concerns over internal restructuring and softening demand in select segments.

Strategic developments amid Euronext options expansion

LVMH’s rebound coincides with structural shifts both within the company and in the broader European trading landscape. Euronext has recently launched a significant expansion of its single-stock options offering, adding 20 new contracts in Paris and 10 in Amsterdam. This includes options tied to high-profile European names such as LVMH, with the aim of revitalizing Europe’s underpenetrated derivatives market. For LVMH, this could lead to increased liquidity, better price discovery, and enhanced hedging capabilities for institutional and retail traders alike.

Internally, the spotlight remains on the troubled Wines & Spirits division. Moët Hennessy has reversed from a €1 billion cash-generating unit in 2019 to a €1.5 billion cash burn operation in 2024. Factors include aggressive pricing strategies, high-cost acquisitions, and cultural integration challenges, particularly in emerging markets. In response, CEO Philippe Schaus was replaced by CFO Jean-Jacques Guiony in early 2025, signaling a pivot toward cost discipline and capital efficiency.

Despite these headwinds, the group’s broader portfolio—encompassing fashion, cosmetics, jewelry, and selective retail—has continued to deliver resilient results. Full-year 2024 revenue reached €84.7 billion, with net income at €12.6 billion. LVMH operates over 6,300 stores globally, and its flagship brands such as Louis Vuitton, Dior, and Bulgari continue to demonstrate pricing power and aspirational value, especially in Asia and North America. While the Wines & Spirits division remains under watch, the company's diversified structure offers a cushion against volatility in any single unit.

Near-term price path and potential scenarios

The short-term outlook for LVMH hinges on the market’s reaction to its ongoing internal restructuring and the external macro environment. Technical and sentiment-driven traders will closely monitor whether the stock can hold above €520 and reclaim the €530–€535 range. A failure to do so may signal waning investor confidence in the group's near-term recovery efforts.

In a base-case scenario, the stock is likely to consolidate within the €510–€530 zone over the next 2–4 weeks, assuming no significant deterioration in macro sentiment or further operational setbacks. This would reflect cautious optimism while awaiting Q3 operational updates. Market participants may use this range as a tactical entry point, especially if volumes stabilize and earnings revisions remain neutral to positive.

LVMH is benefiting from a surge in wealthy Americans traveling to Europe to shop for luxury goods. A strong dollar, VAT refunds, and more competitive eurozone pricing have created an arbitrage effect driving these purchases.

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