Goldman Sachs Bets on a 2027 Fashion Rebound as LVMH Shareholders Weigh a Leadership Shuffle

Goldman Sachs initiated LVMH coverage with a buy rating and 500-euro target, betting on a 2027 fashion and leather goods recovery as the stock trades near a 52-week low.

Goldman Sachs has begun covering LVMH with a buy rating and a 500-euro price target, according to media reports, throwing a rare bullish voice behind a stock that has spent most of the year in retreat. The US investment bank's case rests on an anticipated recovery in the group's all-important fashion and leather goods division in 2027 — a segment whose fortunes are widely seen as the swing factor for the entire luxury conglomerate's earnings power.

The call lands at a delicate moment. LVMH shares have shed 40 percent since the start of the year, trading at 381.90 euros and hovering just above a 52-week low of 376.80 euros. The stock touched a fresh trough of 377.35 euros on Friday, underlining how far sentiment has swung against the French luxury leader.

Succession Signals at the Top

Behind the share-price slide, the Arnault family appears to be weighing changes to the group's leadership structure. French publication La Lettre reported on September 24 that the family is examining adjustments at the top, including the possibility of granting deputy CEO Stéphane Bianchi corporate officer status. The company has not confirmed any such plans.

The ownership architecture itself is also in motion. Christian Dior SE disclosed in late September a plan to merge holding companies Financière Agache and Agache into Christian Dior SE, with the combined entity to operate under the Agache name. Once completed, Agache would directly control 49.76 percent of LVMH's capital and 65.55 percent of its voting rights. The proposal includes a cash offer for Christian Dior's minority shareholders and remains subject to regulatory approvals — a simplification of the control chain sitting above the luxury group.

China Worries Weigh on Forecasts

Broader demand conditions explain much of the pessimism. The global luxury sector has cooled markedly, with investors growing increasingly wary of persistent consumer caution in key markets. Beyond geopolitical tensions in the Middle East, the sluggish recovery in Asia is the main drag on demand.

Concerns about a further slowdown in China have intensified, according to media reports from September 25. Bernstein cut its annual revenue forecasts for the group, having already lowered its LVMH price target to 520 euros on September 15 while keeping an "outperform" rating. The analysts pointed to a pause in China's economic recovery and pressure on the fashion and leather goods division. That segment is pivotal: if wealthy shoppers pull back, pricing power and margins tend to follow. No swift turnaround is yet in sight.

Distribution Push and Brand Momentum

Even so, LVMH is pressing ahead on the commercial front. Sephora struck a partnership with British retailer Marks & Spencer roughly a week ago, with plans to open dedicated beauty departments in 100 UK stores from spring 2027 and to expand their joint online offering.

On the brand side, flagship label Dior unveiled its spring/summer 2027 collection by designer Jonathan Anderson in Paris in late September, as Reuters reported. LVMH also filed mandatory notices with the French financial markets regulator AMF on September 29 covering share transactions between September 21 and 25.

What October Will Reveal

Investors will get a clearer read on the quarter's trading when LVMH reports third-quarter 2026 revenue on October 12 after the Paris market close — a print expected to show how deeply consumer retrenchment has bitten into the numbers. Before that, the group will host its "Journées Particulières" from October 16 to 18, opening the doors of numerous maisons at selected locations worldwide.

Taken together, the analyst endorsement, the quiet reshaping of the family's control structure and the steady stream of brand and retail initiatives suggest LVMH is positioning for a longer game — even as the market waits for evidence that the luxury downturn has finally bottomed.