By Laura McGuire
LVMH became the first European company to reach $500bn (£401bn) in market capitalisation on Monday morning as the luxury retailer was strengthened by a renewed demand from Chinese consumers.
According to reports published in The Financial Times, shares in the Paris-listed company rose 0.3 per cent against last week’s close to €903.7 (£799) shortly after achieving a market capitalisation of €454bn (£401bn).
“The equivalent to $500.3bn as the exchange rate hit 1.1019 to the dollar,” the outlet reported, noting that it was the first time that a European company had surpassed this figure.
Shares in the fashion giant, which owns brands such as Louis Vuitton and Tiffany, have been soaring since the start of 2023, largely thanks to the reopening of the Chinese market post pandemic.
The company, which is controlled by billionaire Bernard Arnault, reported global sales for the first quarter of the year of €21bn (£18bn), up 17 per cent compared to the same period of 2022.
Commenting at the time, LVMH said: “In an uncertain geopolitical and economic context, LVMH remains both vigilant and confident at the start of the year.
“The group will continue to pursue its strategy focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution.”
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