LVMH's Sales Remain Resilient With Benefits From Pricing; FVE Maintained

We are maintaining our fair value estimate of EUR 510 for wide-moat LVMH as the company reported strong first-quarter results, led by its largest and most profitable division, fashion and leather, where sales were up 30% on an organic basis. The positive trends from the past year have continued into the first quarter and the group so far, hasn’t seen the adverse effects of rising inflation on consumer purchases. So far, there is also no observed elasticity to implemented price increases either (Louis Vuitton had a mid-single-digit pricing impact in the first quarter and will benefit from a further mid-single-digit price increase in the quarters to come).