LVMH stock up 3.3% despite €4 million dispute with fired Moët Hennessy CFO

Highlights

- LVMH stock gained 3.3% even as Moët Hennessy became entangled in a €4 million legal dispute with its recently fired CFO.

- Technical resistance remains near €555, with upside potential limited by internal controversies and slowing organic growth.

- Legal and reputational risks in the Wines & Spirits division could weigh on sentiment despite strong fundamentals in other segments.

Moët Hennessy, the Wines & Spirits division of LVMH, is embroiled in a €4 million legal dispute with its recently fired CFO, according to Bloomberg. At the heart of the matter is a contested non-disclosure agreement, with the former executive accusing the company of wrongful dismissal and reputational harm. This comes at a time when Moët Hennessy is already under scrutiny for underperformance and alleged internal mismanagement.

Over the past 12 months, Moët Hennessy has seen its organic sales decline by over 9%, driven by weakness in cognac and champagne sales in China and the U.S. The division has undergone a leadership overhaul, with ex-CFO Jean-Jacques Guiony appointed CEO and Alexandre Arnault stepping in as deputy chief. This management reshuffle is intended to restore investor confidence and streamline decision-making in a segment that has become increasingly volatile.

Multiple legal disputes have surfaced in recent quarters. In July, a former chief of staff filed a €1.3 million harassment and wrongful termination lawsuit against Moët Hennessy. Another former executive is suing the group for €2 million, claiming retaliation after raising concerns about violations of Russian sanctions. These accumulating controversies have begun to weigh on LVMH’s corporate reputation and may draw closer scrutiny from regulators and shareholders.

€550 resistance capping upside momentum

Technically, the stock remains below its 200-day moving average, currently near €553, which acts as the first key ceiling. The 50-Day Moving Average sits around €508, reinforcing that recent momentum has turned mildly bullish in the short term, though the broader trend remains cautious. LVMH has gained nearly 8% in the past month, retracing part of its year-to-date losses, but is still down approximately 14% YTD.

Support is evident in the €480–500 range, where buyers have previously stepped in. This range coincides with volume accumulation zones, indicating investor interest around those levels. A clean breakout above €555 would open a path to €580, while failure to hold above €520 would put the €500 level back into focus. Until such a breakout occurs, price action is likely to remain range-bound, with short-term traders capitalizing on mean-reversion setups.

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

Fundamentally, the stock trades at a forward P/E ratio of 20.7×, with a trailing P/E of 23.3× and a price-to-book ratio of 3.86×. Return on equity is solid at 17.5%, with operating margin at 22.7%, reflecting strong profitability despite top-line pressure in some segments. However, slowing organic revenue growth and internal issues in the Wines & Spirits division are acting as valuation overhangs. These headwinds are preventing the stock from participating fully in broader luxury sector rallies seen in recent weeks.

Stabilization or strategic shift key to €600 path

In the short term, LVMH's share price trajectory will largely depend on whether the group can stabilize its Wines & Spirits division and contain reputational damage. Investor sentiment remains fragile, and any escalation of internal disputes could delay price recovery. Conversely, clarity around leadership strategy and legal resolution may act as short-term catalysts.

In the base case scenario, if legal issues remain contained and cost-cutting across Moët Hennessy improves margins, LVMH could regain the €560–580 range. That implies roughly 3–7% upside from current levels, supported by valuation re-rating and potential recovery in U.S. and Chinese luxury demand. Continued resilience in the Fashion & Leather Goods segment could also offset underperformance elsewhere. Seasonal demand heading into Q4 could further support top-line momentum, particularly in high-margin categories like watches and jewelry.

Silvia Venturini Fendi will step down as creative director at Fendi, continuing only as honorary president, with no successor named yet. Her departure, alongside other high-profile exits in 2025, signals a broader generational shift within LVMH’s key fashion and leather goods division.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.