On Monday, luxury goods conglomerate LVMH achieved a significant milestone by becoming the first European company to exceed a market value of $500 billion.
LVMH, which is the parent company of renowned brands such as Louis Vuitton, Moët & Chandon, and Hennessy, as well as Givenchy, Bulgari, and Sephora stores, reported a 17% increase in its first-quarter sales earlier this month, surpassing analyst predictions by more than double.
Following the positive results, LVMH’s shares reached a record high and achieved another peak on Monday. The company’s share price has risen by 32.8% year-to-date.
For 2022, LVMH reported revenues of 79.2 billion euros ($87.1 billion) and a profit from recurring operations of 21.1 billion euros, marking its second consecutive year of record-breaking results.
The Paris-based company anticipates benefiting from China’s reopening post-Covid, as increased travel is expected to revive spending by high-end consumers.
This anticipated rebound in Chinese consumer spending has also positively impacted the stock prices of other luxury brands such as Richemont, Kering, and Burberry.
Bernard Arnault, the CEO of LVMH, is currently recognized as the world’s richest person according to the Forbes real-time billionaires index.
In 2021, LVMH completed the acquisition of the U.S. jeweler Tiffany & Co. for $15.8 billion.
