As LVMH records new levels in market valuation, its CEO and co-founder of the company is currently the world’s richest person.
Luxury goods company LVMH has become the first European company to exceed $500 billion in market value. LVMH, which engages in the design, manufacture, and sale of luxury products globally, is the parent company of Louis Vuitton, Hennessy, and Moet & Chandon. Its other subsidiaries include Dior, Bvlgari, Sephora, Kenzo, Givenchy, etc.
For Q1 2023, LVMH reported a 17% increase in Q1 sales, representing more than X2 of analysts’ expectations. In reaction to the quarterly sales, its shares grew nearly 5%. Sales at the company reached more than $23 billion during the first quarter. The increased sales were triggered by the sharp rebound from the lockdown in China, its key market. At the beginning of the year, LVMH had said it was looking forward to benefiting from China’s reopening from the global health crisis lockdown. It revealed that wealthy Chinese consumers had resumed shopping since the country’s reopening. Hence, CEO Bernard Arnault said LVMH has “every reason to be confident, indeed optimistic on China”. When he made the statement, the CEO confirmed that the company’s stores in Macau were already full of shoppers.
According to LVMH, sales in Asia, excluding Asia, popped by 14%, compared to an 8% fall recorded in 2022 Q4. The luxury goods maker’s shares hit an all-time high on Thursday, after which it hit another high on Monday.
LVMH Hit $500B Market Value
LVMH, which is now the first European company to surpass $500 billion in market value, reported 79.2 billion euros ($87.1 billion) as revenue for 2022. Also, profit from recurring operations was 21.1 billion euros, marking the company’s second consecutive year of delivering record results. Before the new milestone in market value, Arnault had confidently stated that it would be an excellent year for LVMH. However, chief financial officer Jean-Jacques Guiony said the rebound was nothing compared to the pre-pandemic performance. The CFO noted LVMH is not back to the 2019 levels, adding that the company is “a long way from that”.
In addition, LVMH expects China to drive growth in 2023, which could further push its market value. On the other hand, the demand for European fashion houses in the US decreased, especially among younger shoppers. The new most valued European company said it saw softer demand in the US for fashion and leather goods as business slows down.
As LVMH records new levels in market valuation, its CEO and co-founder of the company, Arnault, is currently the world’s richest person. According to Forbes, Bernard Arnault & Family tops the rank of the world’s richest with a net worth of $243.5 billion. He is about $68.5 billion richer than popular businessman Elon Musk, the second richest in the world, with $175.0 billion as his net worth.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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