L'Oreal steals French stock market crown from LVMH
- 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.
42 Articles
42 Articles
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.
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...
Coverage Details
Bias Distribution
- 42% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
