LVMH’s value exceeds the €200 billion threshold

France
Published:  07 November, 2019

The French luxury conglomerate has seen its value increase 54% since the beginning of the year, and is now one of the most dynamic companies of the French stock market index CAC40.

In 2018, LVMH’s turnover totalled €48 billion; a figure expected to be greatly surpassed in 2019. Group sales are said to have increased six-fold in thirty years and, as LVMH’s shares continue to climb, the conglomerate is now worth €202 billion only three and a half years after becoming the first capitalisation of the CAC40. It now shows a €55 billion advance on L'Oréal, whose market valuation stands at €145 billion, and on Total with an advance of €71 billion. The Group’s founder and CEO, Bernard Arnault, is now number two in the world’s fortune ranking, just after Bill Gates.

LVMH’s upsurge is attributed to the Group’s continuous and sustainable growth, often beating analysts’ forecasts. “If there is one market that manages to durably overcome market fluctuations, it is the luxury sector”, said Gerard Moulin, Manager, Amplegest Pricing Power Fund. “Like the spirits or cosmetics sectors, with which it shares many attributes, luxury benefits from a sustainable structural performance driver; the rise of the middle classes in emerging countries”.

In the first nine months of 2019, LVMH recorded a 16% increase in revenue (+11% organic) to €38.4 billion, with The Fashion and Leather Goods business group achieving organic revenue growth of 18% in the period. In September, LVMH announced an Animal-Based Raw Materials Sourcing Charter that seeks to address the complex issues involved in sourcing of furs, leathers, exotic skins, wool and feathers, and includes long-term commitments encompassing animal husbandry and trapping, traceability, and respect for people, the environment and biodiversity. Read more here.