Luxury goods multinational conglomerate LVMH (Louis Vuitton Moët Hennessy) has achieved a market value exceeding $500bn ($551.85bn), the first European company to have accomplished this feat.
LVMH is the parent company of renowned brands such as Louis Vuitton, Moët & Chandon, Hennessy, Givenchy, Bulgari, the Dior fashion houses, Hennessy cognac and the US jeweller Tiffany.
Earlier in April 2023, LHMV reported a 17% increase in sales for the first quarter of the year with sales of €21.04bn ($23.10bn), exceeding analysts’ expectations, as China experienced a sharp rebound after the Covid-19 lockdowns.
LHMV rebounds in China as US market slows
This growth rate, which excludes currency fluctuations and acquisitions, exceeded previous expectations of an 8% increase. LVMH’s first quarter (Q1) sales rose by 14% in Asia, excluding Japan, compared to a decline of 8% in Q4 2022. The company expects China to drive growth this year.
The US market, which boosted European fashion houses in 2022, is showing signs of waning, particularly among younger, lower-spending shoppers.
LVMH’s shares have risen by 23% in 2023, outperforming a 14.5% rise in the French blue-chip index and giving the company a market capitalisation of €420bn, thus cementing its position as Europe’s most valuable company.