Louis Vuitton – LVMH now the largest company on European stock market

French luxury goods group LVMH has overtaken Swiss food giant Nestle to become the biggest company on Europe’s stock market, owing to resilient Asian sales last year, data showed Wednesday.

LVMH’s market capitalisation reached 271 billion euros (328 billion dollars) in
midday trading, putting it ahead of Nestle’s 265 billion.

LVMH is composed of the leather goods maker Louis Vuitton and champagne
and spirits group Moet-Hennessy, but it also owns brands such as Kenzo,
Guerlain, Fendi, Celine, Chaumet, Sephora and Bulgari.

It’s most recent high-profile acquisition is the US jeweller Tiffany.

LVMH shares were pummelled in February and March 2020 when the coronavirus
pandemic hit, but by early November they had bounced back, and finished the
year with a gain of almost 24 percent at 510.90 euros.

Since January 1 they have risen by almost five percent more.

Regis Begue, senior trader at Lazard Freres Gestion, told AFP that once it
became clear Asia would weather the Covid-19 outbreak better than other parts
of the world, luxury stocks went on a tear.

Luxury groups with a strong presence there enjoyed “an exceptional market
ride,” Begue said.

Another trader, Arnaud Cadart at Flornoy, told AFP that LVMH’s rise to the
top of the market capitalisations “is a kind of consecration” for the company.

The group registered 34 percent of its sales in Asia last year, compared
with 24 percent in the United States, and has managed to boost online sales as
visits to its various shops declined.

“LVMH products are also ones you treat yourself to. And a large amount of
savings was accumulated by wealthier groups that were somewhat spared by the
crisis,” Cadart said.

“A Vuitton bag or Christian Dior outfit is something that could replace the
trip or restaurant you could not do in 2020,” he remarked.(AFP)