Bernstein Tweaks Estimates for LVMH After H1 Results

01:17 AM EDT, 07/28/2026 (MT Newswires) -- Bernstein updated its earnings forecasts for LVMH Moët Hennessy Louis Vuitton (MC.PA), as the research firm took note of the French luxury goods giant's first-half earnings call. "LVMH emphasized that all [Fashion & Leather Goods] brands accelerated sequentially in 2Q26, despite a -1% impact on the quarter from the war in the Middle East. Louis Vuitton performed [in line] with the division average of +1% cFX, while Dior performed above average, growing with all nationalities in 2Q26. The [Watches & Jewelry and Wines & Spirits] divisions also generated a sequential acceleration, with management highlighting the positive impact of Tiffany's strategic transformation, strong growth at Champagne & Wine, and improving conditions in China for Cognac," according to a Monday note. For the three months ended June 30, LVMH reported a 1% year-over-year organic revenue increase for its Fashion & Leather Goods business, while Watches & Jewelry was up 11% and Wines & Spirits gained 5%. "With macroeconomic uncertainty still high, the trajectory of the [artificial intelligence] tech boom still unclear, and a China recovery still on the sidelines, we believe investors will need to see more evidence of a sustained turnaround at Dior, W&J, W&S come 2H26 to finally get excited about LVMH," the note said. Within this context, analysts' full-year 2026 organic sales growth projection now stands at 3.6%, 110bps above consensus, while their EPS assumption for the year climbs 2%. The stock has an outperform rating and price target of 600 euros at Bernstein.