Investing in Luxury Fashion Shares
Heininen, Sanja (2016)
Julkaisun pysyvä osoite on
The purpose of this paper is to evaluate if luxury fashion shares are an attractive investment based on the shares in Hermès, Prada, and Louis Vuitton. This is achieved by analyzing financial data and stock charts using fundamental and technical analysis. The fundamental analysis takes a look at ratios and other financial figures that are compared to each other and the industry either for year 2015 or for a period of five years. The technical analysis highlights trends in the stock charts that could be significant when evaluating it what direction the trend will move in the future. The paper finds out that investing in the luxury fashion companies’ shares could be profitable, if a company with strong fundamentals and increasing share price and dividends in the long-run can be found. The conclusion made based on the analysis is that Louis Vuitton’s LVMH and Hermès are potentially good investments, while investing in Prada would be too uncertain at the moment. The analysis is backed up by the financial data and share performance of the three companies in the luxury fashion market. A broader analysis, where the shares are com- pared to other investments, shares in other industries, or indexes, could be more insightful in making a valid investment decision. Hence this paper is a useful tool for people interested in investing in shares and the luxury fashion market.