PPRUF - LVMH stock touches 52-week high amid resilient luxury demand
2023-04-24 12:27:33 ET
LVMH ( OTCPK:LVMUY ) stock soared to a new high on Monday, moving to an over $500B valuation. The modest gain on Monday extends CEO Bernard Arnault’s lead over Tesla CEO Elon Musk as richest man in the world and lifts the company to become the first European firm to eclipse the half-trillion-dollar mark in terms of market cap.
Arnault now sports a net worth of $212B, according to the Bloomberg Billionaire's Index. His net worth outpaces Musk by $47B and is more than twice the net worth of the next-richest European, L'Oreal heiress Françoise Bettencourt Meyers.
The strong performance for the company Arnault helms in the month of April comes after the French luxury conglomerate reported a 17% jump in revenue from the prior year to €21B in a mid-year trading update. Business segments including watches & jewelry, leather goods, and perfumes and cosmetics each saw double-digit growth. The company also projected continued strength in sales given a “return of travelers to the flagship destinations of Hong Kong and Macao” as well as still-robust sales for key underlying segments like Sephora in North America and Europe despite a tougher macroeconomic backdrop.
Shares have risen about 30% to start 2023, extending the gain to a new yearly high on Monday. The new zenith for the global luxury leader comes just a day before Kering SA ( OTCPK:PPRUY ) is due to provide a trading update. Analysts expect revenue from the Yves Saint Laurent brand to rise about 9% year over year to €784.9M while Gucci revenue is expected to top €2.62B.
Shares of Richemont ( OTCPK:CFRUY ), Burberry Group ( OTCPK:BURBY ), and Hermes ( OTCPK:HESAY ) also rose on Monday. Richemont is reportedly a potential acquisition target for LVMH .
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LVMH stock touches 52-week high amid resilient luxury demand