LVMHthe largest luxury company in the world, has overcome the barrier of 500,000 million dollars of market capitalization.
This is the highest valuation ever recorded by a european company and the first time that its capitalization exceeds the mark of 500,000 million dollars.
Just a few days ago, the company had entered the list of 10 most valuable companies in the world.
The shares of the French luxury company, which owns the brands Moet Hennessy, Louis Vuitton, Dior, fendi and givenchyrose 0.3% at around 2:30 p.m. and have revalued a 33% in the last year.
At today’s intraday maximum, 904.60 euros (995.69 dollars), the company’s market capitalization was around 500.200 million dollars, on a capital of about 502 million shares as of April 18.
On April 13, LVMH announced a 17% increase in first-quarter sales, thanks to a strong recovery in China after the lifting of the restrictions anti covid.
The sales they were located in 21.040 million euros in the quarter up to the end of March.
For an increasing number of investors, LVMH and its French luxury rivals are to the European stock market what big tech has been to the US market: dominant companies whose growth is sustained despite the ups and downs of the economy.
In the last decade, the shares of LVMH and Hermes International have yielded on average more than 20% per year, and those of kering, 16%. In contrast, the Stoxx Europe 600 Index lags far behind, at just 8.3% per year.
The strong sales of handbags Louis Vuitton and champagne moet chandonwhich have boosted LVMH’s share price, have also increased the wealth of its founder, bernard arnaultwho, with a fortune of $198 billion, is the richest person in the world, according to the Billionaires Index of Bloomberg.
The catalyst of growth of the luxury industry This year, as in many recent years, it is China. Chinese shoppers are splurging on luxury handbags and jewelry.
The increase in LVMH sales demonstrates that the demand for expensive products has not decreased despite the global economic slowdown.
the rise of LVMH It also recently made the company the target of protesters as part of the protests against the French president’s pension reform. Emmanuel Macron.
The rally in the shares of luxury goods companies has consolidated the position of Paris As the Europe’s largest stock market, dwarfing London. The benchmark CAC 40 index is on a record run, with gains of more than 15% this year, outperforming other major markets.
(With information from Reuters and Bloomberg)
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Source-www.infobae.com