Luxury Stocks LVMH, Hermes Hit Fresh Record Highs
LVMH Moet Hennessy Louis Vuitton (LVMHF:US) shares broke into the world's top 10 biggest companies as the market cap approaches the $500 billion mark, which would make LVMH the first-ever European company valued at $500 billion or over.
LVMH stock is up almost 35% year-to-date (YTD) as the business continues to shine, boosted by the returning demand for luxury products in China. Shares rallied on Thursday when the company reported stronger-than-expected sales for the first quarter.
“This illustrates the rise of wealthy people across the world, of a polarized society,” said Gilles Guibout, head of European equity strategies at AXA Investment Managers. “The luxury sector is therefore experiencing strong growth.”
The company said its Q1 organic revenue jumped 17%, boosted by the 18% increase in the Fashion & Leather Goods sales. Overall, revenue was reported at €21.04 billion, marking a 17% year-over-year jump. Analysts were expecting Q1 sales of €20.1 billion.
The company lauded an excellent start to the year, within a geopolitical and economic environment which remains uncertain. It added that Asia witnessed “a significant rebound” in sales.
Similarly, LVMH rival Hermes saw its stock hit a fresh record high after the company’s quarterly earnings report also topped analyst expectations. The French company also highlighted the strong demand it is witnessing in China.
U.S. OTC shares of LVMH exchanged hands at $980.00 on Friday, a big increase compared to their closing price of $729.00 on February 28, 2022, when Congressman Don Beyer sold $100,000 - $250,000 worth of shares.
