Shares in the parent company of several luxury brands have hit a record high.
French luxury goods group LVMH has become the first European company to hit a $500 billion market value.
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The demand for their high-end brands is to thank for reaching this milestone. LVMH is the parent company of huge names such as Louis Vuitton, Moët & Chandon, Christian Dior, and Tiffany.
Earlier this month, the company reported a 17% rise in first-quarter sales. This was more than twice the expectations of analysts.
This year, shares in LVMH have soared by more than 30%, making it one of the world’s most valuable listed companies earlier this month.
Chair and chief executive Bernard Arnault has further solidified his position as the richest person in the world. His stake in the company is reportedly worth $212 billion putting him at $47 billion ahead of Tesla’s chief executive, Elon Musk.
Arnault co-founded the luxury goods group 35 years ago and has recently appointed his children to top positions in the company. In January, his eldest child Delphine Arnault became head of Dior.
Meanwhile, her brother Antoine Arnault runs the holding company that controls LVMH. Their three younger siblings also have executive positions in Tiffany, TAG Heuer, and Louis Vuitton.
Shares in other luxury companies such as Richemont, Kering, and Burberry have also risen. Luxury handbag maker Hermès has reported a 23% jump in first-quarter sales. The demand for its products is so strong that the company had to open new factories to increase production.
China’s reopening from the pandemic has brought back high-end travelers and spenders, boosting their share prices.
Banner image via Instagram @lvmh.
