(BFM Bourse) – The French luxury goods stock finished Wednesday’s session more than 2% higher on China’s economic reopening. Its capitalization is now close to 390 billion euros.
LVMH pushes the limits. The market capitalization of the French luxury giant, the first European valuation, reached a new high on Wednesday at the Paris Stock Exchange, at 389.02 billion euros.
Head of CCA 40the company surpasses the previous market capitalization record set in January 2022. A company’s market capitalization refers to the amount it would cost to buy all of its existing shares.
LVMH is in the top 15 of the largest listed companies in the world.
The stock fell 2.12% to 772.30 euros on the Paris Stock Exchange on Wednesday, driven as since the beginning of the year by the economic reopening of China, one of the largest luxury markets in the world.
Appointments acclaimed by analysts
While there are concerns about the impact of the current wave of Covid-19 contamination, China is expected to soon experience “a recovery in consumption,” Pierre Michaud, portfolio manager at Monocle, told AFP. “Some economists speak of a huge phenomenon, others predict a more gradual evolution, but in any case it will be very positive for LVM extension“, he adds.
LVMH announced Wednesday the appointment of Delphine Arnault, daughter of Bernard Arnault, as CEO of Christian Diorwhile Pietro Beccari, who held this position, will take the helm of Louis Vuitton, the world’s leading luxury brand. The decision was welcomed by several financial analysts, such as those of RBC Capital Markets or Bernstein.
The increase in the stock market value of the group has benefited its CEO Bernard Arnault, who recently became the richest man in the world, by dethroning the American Elon Musk, boss of Tesla, SpaceX and Twitter. The fortune of the Arnault family, which controls the group, is estimated at almost 205 billion dollars, according to the Forbes ranking.
Notable resistance in 2022
Already in 2022, the stock had held up relatively well on the stock exchange (-6.48%) despite an economic and geopolitical context that weighed on all markets.
Before that, the stock price LVM extension it had doubled between March 2020 and the end of 2021, a surge that was part of the post-Covid rebound and was made possible by government and central bank relief measures.
The ability of luxury groups to raise prices without affecting sales has also given confidence to investors, in a context of high inflation.
The turnover of the luxury giant has gone from 53.7 billion euros in 2019 to “80 billion expected in 2022”, explains Pierre Michaud.
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