L'Oreal steals French stock market crown from LVMH
L'Oreal’s market value reached about €203 billion, while LVMH fell to €201 billion as luxury demand weakened, analysts said.
- On Tuesday, cosmetics group L'Oreal became France's most valuable listed company, surpassing Louis Vuitton owner LVMH for the first time since 2017 amid persistent luxury sector weakness.
- Persistent price hikes have pushed high-end fashion out of reach for many buyers, with consultancy Bain reporting around 60 million consumers turning away from luxury goods as the industry contracts.
- Berenberg analyst Nick Anderson cited the 'lipstick effect,' explaining, "People simply can't afford to buy these expensive luxury items and instead are indulging in small luxuries like the proverbial lipstick."
- L'Oreal's market capitalization reached around €203 billion against LVMH's €201 billion, causing CEO Bernard Arnault to lose his title as Europe's wealthiest person to Zara founder Amancio Ortega.
- DWS equity portfolio manager Stefan Bauknecht stated, "I don't see luxury trends significantly improving," indicating L'Oreal's new lead in France could well be permanent.
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36 Articles
Three years ago, it was the most valuable company in Europe, but now the French luxury goods group LVMH has fallen out of the top ten for the first time since 2017. Shares fell another 2.5 percent on Tuesday, bringing the company's market value to 201 billion euros, equivalent to 4.9 trillion crowns. That's just below rival cosmetics company L'Oréal, Bloomberg reported.
L'Oréal has overtaken LVMH to become the number one company by market capitalization on the Paris Stock Exchange. This contrasted sharply with the decline in demand for high-end luxury goods and the "lipstick effect," which refers to enjoying small luxuries amidst a recession; consequently, LVMH recorded a significant decline, including being excluded from the top 10 European companies by market capitalization.
(London=Yonhap News) Correspondent Kim Ji-yeon = French beauty group L'Oréal overtakes luxury fashion group Louis Vuitton Moët Hennessy (LVMH) to become the number one company by market capitalization on the Paris Stock Exchange...
Liberation
Le FigaroThe movement also marks the release of Bernard Arnault's group from the European top 10, behind the mastodones of the ASML or Arm Holdings semiconductors, the SAP software champion or the pharmaceutical giants Roche, Novartis and AstraZeneca.
For the first time since 2017, the French luxury group LVMH should no longer be one of the ten most valuable listed companies in Europe. Why?
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