LVMH Market Value Tops $500 Billion in 1st for Europe

Luxury retailer LVMH’s market value has surpassed $500 billion in a first for European firms.

The milestone, observed Monday (April 24) in multiple media accounts, comes weeks after the company reported a leap in sales driven by shoppers in China.

The company — owner of Louis Vuitton, Hennessy and Sephora — said April 12 that its sales had jumped 17% during its first quarter, thanks in part to the lifting of its pandemic restrictions in China, the world’s third largest luxury market.

In remarks during an earnings call, Chief Financial Officer Jean-Jacques Guiony said LVMH was “extremely optimistic” about its prospects in China during 2023, adding that its first-quarter earnings “bode well for the rest of the year.”

Guiony’s bullishness echoed sentiments expressed in January by LVMH Chairman and CEO Bernard Arnault, now the world’s richest person.

“We have every reason to be confident — indeed optimistic — on the Chinese market,” Arnault said. “In Macau, where the Chinese can now travel to, the change is quite spectacular. The stores are full and it’s really come back at a very strong pace.”

LVMH in January saw its market value reach $430 billion, cementing the company’s status as the most valuable in Europe.

The company and other luxury brands have continued to enjoy strong sales recently in spite of inflation. For example, Italian luxury group Brunello Cucinelli, known for its cashmere apparel, reported a 33% increase in sales last week.

As noted here, this increase was chiefly attributed to performance in the Americas and a resumption of sales in Asia, an indication of the rise of the “quiet luxury” trend.

PYMNTS also recently looked at the trend of luxury brands promoting exclusivity to drive sales, with companies like Saks and Gucci offering programs catering to their wealthiest customers.

Saks announced last week it was expanding its exclusive top-client program, Saks Limitless, which offers members access to luxury fashion via a range of unique services and benefits.

Gucci, meanwhile, recently opened the Gucci Salon, a store in Los Angeles catering only to its VIP clients and A-list celebrities.

“While luxury items are not exempt from inflation, wealthy consumers are less affected by price increases, so by targeting that demographic Gucci and Saks can maintain sales,” PYMNTS wrote. “With the Gucci Salon and Saks Limitless, both brands have an opportunity to cater to big-spending clients and A-list celebrities who can afford high-end products, while offering exclusive and customized experiences that appeal to them.”

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