On January 17th, LVMH, the luxury conglomerate, made headlines as it became the first European company to exceed a market valuation of 400 billion euros on the Paris Stock Exchange, solidifying its dominance in the high-end luxury industry. The achievement is a testament to the power and influence of LVMH, and specifically, its leader Bernard Arnault.
Throughout the trading day, LVMH’s share price skyrocketed, reaching a new record of over 800 euros. The company closed the session at 797.40 euros, experiencing double-digit growth since the beginning of the year. This impressive performance can be attributed, in part, to the economic recovery in China, a key market for luxury goods. Business of Fashion and McKinsey & Company predict that China’s economy will grow between 9% and 14% by 2023, providing a significant boost to companies like LVMH.
Currently ranked as the 12th most valuable company in the world, LVMH is set to announce its financial results for the previous year in the coming days. The first nine months of 2022 already revealed a substantial increase in organic sales, up by 20%. The company generated a revenue of 56.5 billion euros during this period, with its fashion and leather goods segments and selective distribution contributing to its success.
LVMH’s impressive growth has enabled the company to continue investing in its portfolio of brands. In late 2022, LVMH acquired Pedemonte, further diversifying its offerings in the luxury market. This strategic move aligns with LVMH’s commitment to remaining at the forefront of the industry by constantly expanding and innovating.
Simultaneously, LVMH has undergone changes in governance within some of its iconic brands. Pietro Beccari was appointed as the CEO of Louis Vuitton, while Charles Delapalme and Delphine Arnault respectively assumed the roles of Deputy CEO and CEO of Christian Dior Couture. These strategic appointments aim to strengthen the position and performance of these brands within the luxury market.
LVMH’s ability to surpass the 400 billion euro mark in market valuation underscores its status as a global luxury powerhouse. As the company prepares to unveil its full-year financial results, it is evident that LVMH remains the leader in the luxury industry and shows no signs of slowing down. The future looks promising for this European luxury giant as it continues to thrive and innovate in a rapidly evolving market.
Links:
1. Business of Fashion: LVMH Triumphs €400 Billion Market Valuation Milestone
2. Bloomberg: LVMH Notches €400 Billion Value With a Touch of Surrealism
