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, according to LSEG data.
- On Tuesday, cosmetics group L'Oreal became France's most valuable listed company, surpassing Louis Vuitton owner LVMH for the first time since 2017 as high-end luxury companies face prolonged pressure.
- 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 global 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, while CEO Bernard Arnault lost 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," suggesting L'Oreal's lead in France could prove permanent amid persistent industry headwinds.
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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.
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