Luxury giant LVMH is Europe’s first company worth $500 billion. Sales at LVMH rose 17% in the first quarter of 2023.
Monday, LVMH became the first European company to have a market value of more than $500 billion. This was because its share price increased, and the euro strengthened.
The luxury group, run by the wealthy Bernard Arnault, showed a 17% rise in sales in its first-quarter report, more than double what analysts expected. After the results, shares of the company that owns Louis Vuitton, Mot & Chandon, Hennessy, Givenchy, Christian Dior, Bulgari, and Sephora increased significantly.
On Monday morning, shares of the Paris-listed company went up 0.3% to €903.70 ($996.19), giving the company a market value of €454 billion ($500.5 billion).
For 2022, LVMH recorded sales of €79.2 billion ($87 billion) and a profit from regular operations of €21.1 billion ($23 billion). This was the second year LVMH had a record year in a row.
The latest numbers show that demand for luxury items like Louis Vuitton handbags and Christian Dior dresses has stayed the same, even though rising inflation in the EU and rising interest rates threaten to put the world economy into a slump.
China’s reopening after it got rid of its “zero-Covid” policy has also led to good results. Sales in the Asian country are booming, helping the luxury products industry grow.
The rising value of LVMH has made Bernard Arnault, the richest person in the world, even richer. The Bloomberg Billionaires Index says his wealth is nearly $212 billion.