Christian Dior - LVMH at a Discount

Investors in the Elevation Capital Global Shares Fund own shares in Christian Dior SE [DIOR.PA], a French based holding company that controls a 41% interest in Louis Vuitton Moet Hennessey (LVMH). In 2017, LVMH acquired Dior (the fashion house) from Christian Dior SE in a US$13.10 bln deal, consolidating LVMH’s fashion offerings which is today the largest luxury goods conglomerate in the world 

The luxury goods industry, like many others, has been hard hit by COVID-19 in 2020 with all industry leaders anticipating a loss of profits caused by the closure of stores and restrictions on tourism. Given the capacity and agility possessed by Christian Dior / LVMH, we have few concerns about the reductions in earnings having longevity and negatively affecting the business over the long-run. The companies operate in a unique position within the luxury goods industry having successfully employed a vast vertical integration model and diversifying its revenue streams on a global basis that positions the company to flourish once a “new normal” is established. 

To learn more about why we believe Christian Dior represents a compelling long-term investment opportunity for the Fund, please click here.