Luxury goods giant LVMH becomes the first European company to surpass $500 billion in market value

Wealth

A pedestrian carries a Louis Vuitton shopping bag, from a store operated by LVMH Moet Hennessy Louis Vuitton SE, on New Bond Street in London, U.K., on Wednesday, Oct. 21, 2020.
Hollie Adams | Bloomberg | Getty Images

Luxury goods giant LVMH on Monday became the first European company to surpass $500 billion in market value.

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, and hit another high on Monday.

It reported revenue of 79.2 billion euros ($87.1 billion) for 2022, with profit from recurring operations of 21.1 billion euros — its second consecutive year of record results.

The Paris-based firm has said it is set to benefit from China’s Covid reopening as the return of travel brings back high-end spenders. Hopes of a rebound in Chinese consumer spending have also boosted the share prices of other luxury groups including Richemont, Kering and Burberry.

LVMH CEO Bernard Arnault is currently the world’s richest person, according to the Forbes real-time billionaires index.

In 2021, LVMH completed the acquisition of U.S. jeweler Tiffany & Co for $15.8 billion.

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