LVMH, the group renowned for marketing luxury brand products such as Louis Vuitton, Dior, Givenchy, Moët Hennessy and Fendi, is now the most valuable company in Europe and ranks 11th in the world by market capitalization.
This Monday, the company “passionate about creativity” ended with a market cap of 500.300 million dollars, thus positioning itself as the most valuable company on the stock market in Europe.
The second and third most valued European broadcasters are Novo Nordisk, a Danish pharmaceutical company, with a capitalization of 383.3 billion dollars and L’Oréal, the French cosmetics and beauty company, worth 256.7 billion dollars in the European stock market. .
The shares of the French luxury company ended the trading day on Monday with a slight upward movement of 0.10%, at 902 euros per unit. During the year, it accumulates a yield of 32.67% on the Paris Stock Exchange.
These advances in the stock market represent a market gain of 131,785 million dollars during 2023.
Alejandro Fuentes, Director of Short-Term Strategy at Actinver Casa de Bolsa, explained that the position reached by the company chaired by Bernard Arnault is in line with the rebound that has also been seen in recent weeks among other luxury brand companies .
“There has been a significant increase in buyers in China for this type of luxury products, which is why this rebound has been seen. Even overbought levels are now maintained for these stations, but caution must be exercised”, said the specialist.
In its financial report for the first quarter of 2023, the company headed by the richest person in the world, according to the Bloomberg Billionaires Index, mentioned that the Asian market experienced a significant rebound in sales, after the lifting of sanitary restrictions.
The growth in said region was 14% in its sales compared to those of the first three months of 2022. In Japan the increase was 34%, this market was benefited by a greater demand from local customers and international travelers; in Europe its sales grew 24% and in the United States, 8 percent.
He mentioned that in an uncertain geopolitical and economic context, LVMH remains vigilant and will continue with its strategy focused on the development of its brands.
Alejandro Fuentes commented that the escalation in the company’s stock market value may be “a bit at odds with the economic recession that is expected in the United States.”
The foregoing, he went on to explain, because the first thing that people stop buying in a period of recession are luxury products, which is why the movement of this company has attracted attention, reflecting that the demand for this type of brand continues.
LVMH, the world’s high-quality products group, recorded revenues of 21 billion euros in the first quarter of 2023, 17% more than in the same period of 2022.
Bernard Arnault, the richest of all
Bernard Arnault is now the richest person in the world, unseating Elon Musk, the CEO of Tesla, the electric car maker.
Arnault and his family have amassed an estimated net worth of $238.7 billion, according to Forbes.
Just to mention some of their businesses, in the world of fashion they are recognized under brands such as Christian Dior and Louis Vuitton, as well as Givenchy, Marc Jacobs, Kenzo, Loewe, Off-White, Stella McCartney or Céline. Other brands in its cosmetics and perfumes division are Rihanna, Guerlain and Make Up For Ever. In watches and jewelry he owns Bulgari, Tiffany & Co, TAG Heuer, Zenith, Chaumet.
It also markets drinks such as Moët Chandon, Château Cheval Blanc, Château d’Yquem, and Dom Perignon. In this division, he owns vineyards, production chains and wineries, which gave him revenues of more than 6,000 million euros in 2022.
