Stock Spotlight: Record profits help LVMH bag $500bn market value

Boosted by China sales

Elliot Gulliver-Needham
clock • 4 min read

LVMH became the first European company to achieve a market value exceeding $500bn last week, after the firm’s net profit hit a record high in 2022 of €14.1bn for the period, up 17% compared to 2021, according to its annual results.

The company has seen continual strong growth in the last few years, with its stock price rising 43.6% in the last year alone, according to data from MarketWatch. LVMH stock price (€) Wilfrid Craigie, senior analyst at Asset Value Investors, said the luxury goods market has been "thriving" for several decades, growing an average of 6% annually since 1996. "Within this, LVMH has grown at a higher rate," Craigie noted, crediting this to "the alluring and illustrious heritage of its brands", along with its strong management. "The luxury industry has high fixed costs in terms of di...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

Impax AM on acquisition trail as AUM steadies

Impax AM on acquisition trail as AUM steadies

Fixed income and private markets

Beth Brearley
clock 28 November 2024 • 2 min read
Shares in Direct Line rise by over 40% following rejection of £3.3bn Aviva bid

Shares in Direct Line rise by over 40% following rejection of £3.3bn Aviva bid

Offer 'highly opportunistic'

Sorin Dojan
clock 28 November 2024 • 2 min read
BlackRock to strike deal for private credit manager HPS - reports

BlackRock to strike deal for private credit manager HPS - reports

Amid M&A spree

Linus Uhlig
clock 28 November 2024 • 1 min read
Trustpilot