Isabel Marant - comment

LLVMH reported 1% organic sales growth in the third quarter, a rebound from previous declines, with its Fashion and Leather Goods division, the largest and most closely watched segment, declining by 2% on an organic basis. This represented a significantly smaller drop compared to the 9% decline in the second quarter. LVMH’s shares rose by 15%, as investors began to hope that the dip in demand may be coming to an end.

However, one swallow does not make a summer, and given that Q4 2024 results will face tougher comparatives, we would urge caution regarding excessive optimism. That said, our view on Isabel Marant, as reiterated in our recent note, remains unchanged. The structure of the deal, combined with the position of the founding shareholder, makes any investment in Isabel Marant bonds a difficult proposition.