LVMH Highest Valued Company Europe Stock Market

French luxury conglomerate LVMH has proven that it is amongst the key beneficiaries of investor optimism.

Finaria reported that as of the end of February this year, the group’s market value cap stood at €264.55 billion Euros (approximately $320 billion USD). LVMH is currently the highest valued company on the European market, overtaking Nestle which was valued at €242 billion Euros, roughly $292.5 billion USD.

Between April 2020 and February 2021, LVMH’s share price increased by 65.4 percent. However, during the same period, the company’s luxury rival Richemont reportedly posted a share price gain of 74 percent. Hermès also saw immense success, with its stock price increasing by 54.7 percent. Kering on either hand saw the lowest rise since its stock only shot up by 22.1 percent.

With 75 primary brands across five divisions, LMVH is the world’s largest luxury group. Its fashion and leather goods division accounted for 86.5 percent of its 2020 profit alone, also making up 46 percent of the company’s revenue between Q1 to Q3 in 2020. Selective retailing accounted for 24 percent, perfumes and cosmetics at 12 percent, wines and spirits at 11 percent and watches and jewelry at 7 percent.

By the end of the fourth quarter, LVMH group sales totaled €14.3 billion EURO ($17.2 billion USD) at only a three percent decline. However, the final quarter saw an 18 percent spike in revenue under the fashion and leather goods segment. The Asian markets contributed to the Q4 2020 uptick as the group’s revenue increased by 21 percent, while Europe posted a 24 percent revenue decline.

Despite the pandemic, LVMH has still been able to find success. However, it is important to note that French luxury conglomerate’s revenue did fall by 16 percent, while its net profit declined by 34 percent. On the upside, the acquisition of U.S. jewelry company Tiffany was completed at $15.8 billion USD. As for 2021, LVMH projects an increase of 18 percent in revenue and an uptick of 67 percent in earnings.

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