Lvmh, the first European company that exceeds 500 billion in Borsa-Corriere.it

Lvmh, a group specializing in fashion and luxury, is the first European company to exceed the threshold of 500 billion dollars in market capitalization. The news comes less than two weeks after its entry into the ranking of the 10 largest companies in the world. The colossus back from five positive sessions, following a record quarter that saw revenues rise 17% to €21bnbenefiting both from the return to normality and reopening in China after the restrictions and from a growth in global demand for luxury goods, which is not affected by the pangs of inflation.

Capitalization of 454 billion euros

Upon crossing the 500 billion dollar threshold, as reported Bloombergthe strengthening of the euro also contributeswhich trades at 1.1 on the greenback allowing for 454 billion eurosof capitalization of the French group to translate into 500 billion dollars. The rise in stock prices cements Bernard Arnault’s position as the richest man in the world, with assets that Forbes estimates at $211 billion, surpassing Jeff Bezos, Elon Musk and Warren Buffett. Luxury brands for French stock markets are dominant for the growth and development of the economy. As for Lvmh, where Louis Vuitton, Moet&Chandon and Christian Dior are among the many, demand has also resisted the threats of recession due to rising inflation and interest rates that continue to rise. But shareholders fear a slight deterioration in the stock due to the group’s declining performance in the United States, especially as regards cognac and leather goods.

The first quarter of 2023

According to the numbers for the first quarter of the year, fashion and leather accessories represent the largest business for Lvmh, with 10.72 billion in revenues (+18% at comparable structure and constant exchange rates) and the second most dynamic, after selective retail (+28%). Watches and jewelery are the third fastest growing sector (+11%), followed by perfumes and cosmetics (+10%). At the end wines and liqueurs (+3%). The group will continue to pursue its strategy aimed at the development of its brands, a sustained policy of innovation and investment, as well as a constant search for product quality, their desirability and their distribution, specified the luxury giant, in the note .