LVMH is the first European company ever to be worth USD 500 billion on the stock exchange

The French luxury group LVMH became the first European company ever to reach a market value of 500 billion dollars (more than 450 billion euros) on Monday.

The share of LVMH, known for brands such as Louis Vuitton, Christian Dior and Givenchy, rose by 0.3 percent to 903.7 euros on Monday.

The group was thus worth about 454 billion euros, but due to the strong rise in the euro in recent weeks, this corresponds to 500 billion dollars.

Milestone

Most analysts expect a further increase in the price.

The value of the company, which is listed in Paris, is benefiting from higher demand for luxury goods in China and from the more expensive euro. The Chinese buyers are completely back after the many lockdowns in 2022.

The $500 billion market capitalization milestone comes just two weeks after LVMH entered the top ten largest companies in the world. That came after a strong first quarter, in which sales increased by 17 percent, almost double the analyst forecast (+9 percent).

Richest man Bernard Arnault

For Bernard Arnault, the 74-year-old CEO and reference shareholder (48.3 percent) of LVMH, the increase in the stock market is good news.

After the announcement of the stunningly strong quarterly update on Thursday, April 13, LVMH’s share price rose more than 5.5 percent.

As a result, Arnault, who was already the richest person in the world, became 10.5 billion euros richer in one day. With a fortune of about $ 210 billion, he leaves Elon Musk, Jeff Bezos, Bill Gates and Warren Buffet far behind.

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Acquisitions

Arnault took his first steps in the world of luxury goods in 1984, with the acquisition of the textile group Boussac Saint-Freres. He had the Christian Dior brand in his portfolio. Subsequently, Arnault took a controlling interest in LVMH, the two main parts of which -Louis Vuitton and Moet Hennesy- had merged in 1987.

Over the next thirty years, the group made dozens of acquisitions. LVMH grew into a leading luxury group, with 75 brands and 5,600 stores worldwide. The first store in China opened in 1992.

In March last year, LVMH raised the age limit for its CEO from 75 to 80. In this way, Arnault assured that he will be able to stay in control for some time to come. His five children are all working in his empire.