Louis Vuitton owner LVMH becomes Europe's first $500 billion company

LVMH, owned by Bernard Arnault (on the right, pictured with his children Antoine and Delphine Arnault), is worth 30% more than in January

The owner of Louis Vuitton, Christian Dior and Tiffany has become the first European company to top $500bn (£402bn) after renewed demand from Chinese buyers boosted sales.

LVMH, which is run by the world's richest man, Bernard Arnault, passed the $500 billion mark after shares rose 0.3 percent in Paris. Later they went down again. However, this means that LVMH has become the first European company to have such a high market capitalization.

After several months of share price growth, LVMH is worth about 30% more than at the beginning of 2023. Over the past two weeks, LVMH has ranked among the 10 largest companies in the world.

The conglomerate, which also owns Tag Heuer and Moët & Chandon, has been supported by Chinese buyers' spending after strict Covid-19 regulations were lifted in December. China is one of the largest luxury markets in the world.

In the latest update from LVMH earlier this month, the company said sales were up 17% in the first three months of the year on what it called a «significant recovery.» in Asia. About 80% of LVMH's Asian business is in China, and the Louis Vuitton store in Beijing has been open since 1992.

LVMH is not alone in bringing Chinese shoppers back to its stores. , and rival luxury goods company Burberry reported «some very promising signs and traffic changes». to their Chinese stores in January. Analysts predict that the reopening in China could boost demand for high-end apparel and accessories by 20% this year.

Morgan Stanley's Édouard Aubin said: “From this year on, China should be the industry's growth engine, and we expect brands at the top of the luxury pyramid to benefit the most. ."

Morgan Stanley reported that both Chinese and Korean shoppers are “increasingly prioritizing the highest priced brands they view as status symbols while cutting spending on less expensive, more fashion oriented or 'desirable' brands that are popular with Western buyers".