The LVMH group has surpassed the $500 billion capitalization mark, the highest valuation in the history of a European company and the first valuation above that mark, Reuters reported.
LVMH, the French luxury goods group that includes brands such as Dior, Louis Vuitton and Moët & Chandon, has become the first European company with a market value of $500 billion, thanks to the growing demand of the rich for its luxury goods brands, the Guardian reported.
LVMH with a record capitalization
He added that LVMH’s shares are up 30% this year, making the company one of the top ten most valuable listed companies in the world.
“The company (LVMH) may not be unscathed if a recession materializes, but as its share gains in 2020 and 2022 show, there is a strong appetite for shares in the ever-growing global luxury goods market,” Chris Beauchamp, chief executive of the company, told Reuters. general market analyst in the IG online trading platform.
The richest even richer
The new valuation puts Chairman and CEO Bernard Arnault’s stakes at $212 billion, cementing his position as the world’s richest person. He is $47 billion ahead of Tesla CEO Elon Musk, who is in second place, the Guardian pointed out.
He also said earlier this month, LVMH said it had reported a 17 percent increase in sales. sales growth in the first quarter, more than double what analysts expected. Last year, it achieved record sales of €79.2 billion and launched a €1.5 billion share buyback programme.
Rival Hermes, maker of Birkin and Kelly bags worth more than £5,000, saw a 23% increase in sales. sales growth in the first quarter. Share prices of other luxury goods companies, including Kering (which owns Balenciaga and Gucci) and Burberry, have also seen share prices surge, the British daily reported.
Success in the family
CEO Bernard Arnault, who co-founded the luxury goods group 35 years ago, recently appointed his children to key roles in the company. In January, his eldest daughter, Delphine, became the head of Christian Dior, the second largest brand in the empire. Her brother Antoine has been promoted to run the holding company that controls LVMH and the Arnault family fortune.
Three of his younger children also hold important positions in the company. Alexandre Arnault is an executive at Tiffany, Frédéric Arnault is the CEO of TAG Heuer, and the youngest sibling, Jean Arnault, heads marketing and product development for the Louis Vuitton watch division.
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