Very good article. The way Hermes manage its ultra high end handbag is perfect. LVMH has 3.5x more free cash flow than Hermes so I suspect than in 1-3 years LVMH will have overtaken Hermes in terms of market cap once some of the business facing headwinds, cognac, mid-range luxury, fashion will be ok.
The no comment was a reference to a French daily 5 minutes journalistic video that I loved where the highlight of the key évents of the day were shown without journalistic comment to let the images sink in
https://marcinparis.substack.com/p/when-the-discreet-overtakes-the-grand?r=5ib925
Very good article. The way Hermes manage its ultra high end handbag is perfect. LVMH has 3.5x more free cash flow than Hermes so I suspect than in 1-3 years LVMH will have overtaken Hermes in terms of market cap once some of the business facing headwinds, cognac, mid-range luxury, fashion will be ok.
Unless LVMH changes something, it may continue to lose desirability, both by consumers and investors. Thanks for reading my article!
Would love your feedback on my article: When the Discreet Overtakes the Grand Part II
https://open.substack.com/pub/marcinparis/p/when-the-discreet-overtakes-the-grand-4f9?r=5ib925&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true
The longer the worldwide situation is uncertain the more people are "sitting on their money" as long as they are not REALLY rich.
True. Uncertain Times is good for patient investors. I do not see positive event trigger in the horizon. Could be dead money.
The no comment was a reference to a French daily 5 minutes journalistic video that I loved where the highlight of the key évents of the day were shown without journalistic comment to let the images sink in