The French luxury conglomerate that owns Louis Vuitton Dior and Tiffany is the first European firm to achieve a valuation of $500 billion. This was boosted by Chinese demand for luxury goods.
After Beijing lifted restrictions related to coronavirus, shares of LVMH, a Paris-listed company, have risen about a third in value this year. This is more than the CAC 40 index for France.
Bernard Arnault and his family have seen their fortunes increase. The French tycoon, his family and close to 64% of the voting rights in LVMH are owned by the French tycoon. Forbes estimates that Arnault has a fortune worth about $243 billion. Arnault is the richest man in the world, according to Forbes, with an estimated fortune of about $243 billion. Elon Musk is the Tesla founder whose wealth is valued around $171 billion. Jeff Bezos is the Amazon founder and his wealth is approximately $128 billion.
Bernard Arnault is the richest person in the world. He is chairman and CEO of LMVH.
LVMH Moet Hennessy Louis Vuitton is a French multinational company that specialises in luxury goods. In 1987, Louis Vuitton merged with Moet Hennessy. It has 60 subsidiaries and manages 75 brands including Loewe Marc Jacobs, Celine, Marc Jacobs, and Marc Jacobs.
After being affected by Covid’s lockdowns in 2013, the luxury sector benefited from an improving Chinese economy. This is its largest growth market.
Bank of America recently said that they believed that the “Chinese Consumer Momentum is Here to Stay” and Bernstein told their clients that LVMH was making the most of the sustained growth in European and American demand, while also reaping the benefits of a strong and rapid rebound in Chinese spending.
The company’s Asian operations are dominated by sales from China. The group has also benefited from the strengthening of the euro. Revenues grew by 17 percent in the first quarter of this year.
LVMH’s brands, which include Tag Heuer, Moet & Chandon and Moet & Chandon are almost twice as big as Hermes, and more than double L’Oreal’s. It is among the top ten world’s most valuable companies. Apple is the leader of this list with $2.6 trillion. The only other non-US firm on it is Aramco, Saudi Arabia’s oil giant.
On the European Stoxx 600 benchmark index, LVMH also has a value higher than Nestle, which is the largest food company in the world, and Novo Nordisk (the Danish drug maker).
Louis Vuitton reached another milestone in January, becoming the first luxury brand to have annual sales exceeding EUR20 billion. HSBC estimates that Dior’s sales have quadrupled in the last four years. has appointed Arnault’s daughter Delphine to the position of chief executive. The promotion is closely watched by outsiders who are trying to decide which one of Arnault’s five children will succeed him.
Louise Deglise Favre, an analyst with GlobalData, stated that LVMH remained a “relevant and desirable brand across multiple generations including the important Gen Z demographic”.