Luxury goods conglomerate LVMH on Monday, April 24, achieved a significant milestone by becoming the first European company to exceed a market value of $500 billion. This remarkable achievement can be attributed to the surge in sales of luxury goods in China, as well as a strengthening euro.
The achievement comes barely two weeks after the parent company of renowned brands such as Louis Vuitton, Moët & Chandon, Hennessy, Givenchy, Bulgari, and Sephora, announced an outstanding 17 percent increase in sales during the first quarter of the year, exceeding analyst projections by over double.
After releasing its financial results, the company's shares soared to an all-time high and continued to climb on Monday.
The company reported impressive revenue of 79.2 billion euros ($87.1 billion) for the year 2022 — its second consecutive year of record results.
Additionally, LVMH's profit from recurring operations amounted to a staggering 21.1 billion euros, further cementing its financial success.
The Paris-based firm has expressed its optimism for profiting from the reopening of China after the COVID pandemic, as the resurgence of travel is expected to attract high-end spenders back to the luxury market.
This positive outlook for Chinese consumer spending has likewise elevated the stock values of several other prominent luxury brands, such as Richemont, Kering, and Burberry.
LVMH CEO Bernard Arnault currently holds the title of the world's richest person, as reported by the Forbes Real-Time Billionaires Index. His net worth, as estimated by the Bloomberg Billionaires Index, is almost $212 billion.
In 2021, LVMH successfully acquired the US jeweller Tiffany & Co for a massive $15.8 billion.
Also read: Wolf in Cashmere: Bernard Arnault, the centibillionaire who mixes luxury with ruthless acumen
