Shares in Christian Dior show signs of an exhaustion of the upward trend. A correction phase appears to be the most likely scenario.
Summary
● For a short-term investment strategy, the company has poor fundamentals.
Strengths
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The tendency within the weekly time frame is positive above the technical support level at 172.35 EUR
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 206.25.
● Technically, the stock approaches a strong medium-term resistance at EUR 206.25.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The company's earnings releases usually do not meet expectations.
● Analysts covering the stock have recently lowered their earnings forecast.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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Christian Dior SE is a holding company organized around 6 areas of activity:
- sale of fashion products and leather goods (48.9% of net sales): primarily Louis Vuitton, Fendi, Céline, Loewe, Givenchy, Kenzo, Thomas Pink, Berluti, Pucci and Loro Piana brands;
- selective distribution (20.6%): activity ensured through Sephora, DFS, Le Bon Marché and Ile de Beauté;
- sales of watches and jewelry (12.6%): Bvlgari, TAG Heuer, Zenith, Hublot, Chaumet and Fred brands;
- sale of fragrances and cosmetic products (8.3%): fragrances (Christian Dior, Guerlain, Givenchy, Kenzo brands, etc.), makeup products (Make Up For Ever, Benefit Cosmetics, Fresh, Acqua di Parma, KVD Beauty, Ole Henriksen, etc.), etc.;
- sale of wines and spirits (7.6%): champagnes (Moët & Chandon, Mercier, Veuve Clicquot, Krug, etc.; No. 1 worldwide), wines (Dom Pérignon, Newton Vineyards, Château D'Yquem, etc.), cognacs (primarily Hennessy; No. 1 worldwide), whisky (primarily Glenmorangie) and vodka (Belvedere).
- other (2%).
Net sales are distributed geographically as follows: France (7.9%), Europe (16.4%), Japan (7.3%), Asia (30.9%), the United States (25.3%) and other (12.2%).