Leading French luxury goods company Moët Hennessy Louis Vuitton (LVMH) exceeded €400 billion in market capitalization on Tuesday morning on the Paris Stock Exchange. This is the first time in history that a European company has surpassed this threshold.
The share price of the company reached a new all-time record this morning, amounting to €795.70 (+0.38%). Since the start of the year, the company’s share price increased by over 16%, boosted by the resumption of manufacturing and commercial activity in China. By the end of the day, the share price equalised to €791.40, down 0.15% during the day's trading.
LVMH’s market capitalization, the total market value of all the group’s outstanding shares, peaked at €400.4 billion on Tuesday. This makes the French luxury company the best valued company on the stock market in Europe, ahead of other international conglomerates such as Nestlé or Danish pharmaceutical company Novo Nordisk.
Despite the record market capitalization, LVMH still pales in comparison to US giants such as Apple, which reached a market capitalization of $2.13 trillion at the end of trading on 13 January. According to American financial publication Bloomberg, LVMH is now the 12th most highly valued company in the world, making its boss Bernard Arnault the richest man in the world.
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Experts forecast a significant recovery in demand for luxury goods from the Chinese economy in the coming year as authorities began to relax anti-epidemic measures.
In 2021, the Asian market, with the exception of Japan, accounted for 35% of LVMH’s sales. Chinese sales are also expected to greatly boost the profits of other companies such as France’s Hermès and Italy’s Ferragamo.