Louis Vuitton (OTCMKTS: LVMHF) founder and chief executive officer (CEO) Bernard Arnault has been buying LVMHF shares quite aggressively.
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Over the past three months, Arnault has executed roughly €855 million (~$976 million) worth of LVMHF trades, the latest one, from May 23, 2025, amounting to nearly €20 million (~$22.8 million).
In the meanwhile, the LVMHF stock has dropped over 24% and is now trading at its lowest price in almost half a decade.
What’s notable is that Arnault’s trades were not a planned, one-time purchase. Indeed, he’s been buying shares almost every week since the beginning of 2025.
Moreover, Arnault’s timing also comes ahead of LVMHF’s next earnings report, scheduled for late July. This suggests his monster trades could be a hint of a coming change in the near future.
One reason for that is that the Arnault family already owned more than 49% of LVMHF shares in late 2024.
With increased buying on Arnault’s part, speculation is mounting that he may be looking to cross the 50% threshold and gain majority ownership.
It also suggests that Arnault might see the recent price dips as a temporary mispricing there to be exploited.
After all, as Peter Lynch put it, insiders sell stocks for a number of reasons but buy it only for one — because they think the price will rise.
Thus, Arnault’s repeated purchases hint at his confidence that the company’s fundamentals remain intact.
Louis Vuitton valuation
Still, it can’t be ignored that LVMH reported disappointing sales for Q1 2025, especially in fashion and leather goods.
Indeed, the broader luxury market has grown weak, with pronounced slowdowns in critical regions such as China and the United States.
This is hardly surprising, considering that consumer demand for high-end goods is expected to go down during economic uncertainty, rising interest rates, and trade wars.
Also concerning is LVMH’s dwindling market share in luxury fashion, which brands like Hermès (EPA: RMS), whose stock is up 9.25% in the last six months, have capitalized on.
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