L'Oreal steals French stock market crown from LVMH
L’Oréal’s market value rose to about €203 billion as its shares held up better than LVMH amid three years of weakening luxury demand.
- 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.
46 Articles
46 Articles
L’Oréal Overtakes LVMH as France’s Most Valuable Company
L’Oréal overtook LVMH on Tuesday as France’s most valuable listed company, reaching market capitalization of about €203 billion ($234.2 billion) versus LVMH’s €201 billion ($231.9 billion). Analysts say consumers are favoring small indulgences over big-ticket items, lifting L’Oréal shares by 5% this year while LVMH fell by 35%. LVMH also dropped out of Europe’s top 10 companies by market capitalization, and CEO Bernard Arnault lost his title as …
The duel between the first two stock market capitalizations in Paris is played in China, where, for the moment, beauty prevails over chic, explains Isabelle Chaperon, columnist at the "World Economy" department.
LVMH, Hermès, Kering... On the Stock Exchange, what could make luxury equities bounce back on a sustainable basis, according to the financial analysis? The luxury sector has returned to major media levels, to be monitored according to the technical analysis.
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.
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