Luxury goods behemoth LVMH became the first European business to have a market value greater than US $ 500 billion.
The accomplishment comes less than two weeks after LVMH, propelled by a spike in first-quarter sales, entered the top ten corporations in the world.
The parent company of Givenchy, Bulgari, Moët & Chandon, and Hennessy as well as brands like Sephora reported a 17 per cent increase in first-quarter sales earlier this month, exceeding analyst projections.
After the findings, LVMH shares reached a record high and then reached another high on Monday. To date this year, the share price has increased by 32.8 per cent.
It announced 2022 revenue of € 79.2 billion (US $ 87.1 billion) and recurring operating profit of € 21.1 billion, marking the company’s second straight year of record performance.
The Paris-based company has said that the reopening of China’s Covid will benefit it since high-end consumers are returning as a result of travel. Other luxury businesses, such as Richemont, Kering, and Burberry, have seen their share prices rise due to expectations of an increase in Chinese consumer spending.
Even though the globe was on the verge of entering a recession due to skyrocketing inflation and rising interest rates, demand for LVMH products like Christian Dior dresses, Moët & Chandon Champagne, and Louis Vuitton purses remained strong.
Bernard Arnault, CEO of LVMH, is presently ranked as the richest person in the world by Forbes’ real-time billionaires index. Tiffany & Co. in the United States was acquired by LVMH for US $ 15.8 billion in 2021.
