Luxury goods giant LVMH on Monday became the first European company to surpass $500 billion in market value, according to CNBC.
The parent company of Louis Vuitton, Moët & Chandon and Hennessy as well as brands including Givenchy, Bulgari and Sephora stores, reported a 17% rise in first-quarter sales earlier this month, more than double analyst expectations. Its shares hit a record high following the results.
It reported revenue of 79.2 bln euros in 2022, with a profit from recurring operations of 21.1 bln euros.
The Paris-based firm has said it is set to benefit from China’s reopening as the return of travel brings back high-end spenders.
The achievement comes less than two weeks after LVMH joined the ranks of the world’s 10 biggest companies, powered by a surge in first-quarter sales. Rival Hermes International subsequently published its own strong numbers, reinforcing the view that China’s reopening from pandemic lockdowns is fueling growth across the industry, Bloomberg reports.
The company’s rising value has swelled the wealth of the world’s richest person, Bernard Arnault, who built LVMH into a global powerhouse through a series of acquisitions.
LVMH did caution this month that it’s seeing a slowdown in US growth, with demand for cognac and leather goods particularly affected, and some investors fret that the stock inevitably will be hurt should the economic slowdown worsen.