LVMH (OP, TP EUR160.0): LVMH posted group org sales up +4% in 2Q against cons. of +3% (source: Bloomberg). This was driven by a beat for Fashion & Leather Goods org sales up +1%. The overall margin for LV was down 30bps to 27.7%. Considering that DK turned loss making in 1H, this means LV margins should have been flat. We understand that a better gross margin was enough to offset some cost deleverage. The +13% org growth for Wines & Spirits confirms that destocking in China is really over. We continue to favour LVMH in our coverage universe due to its c.60% sales exposure to staples/retail assets, a resilient LV brand and potential share buyback from 2H.