Stock Spotlight: Record profits help LVMH bag $500bn market value

Boosted by China sales

LVMH became the first European company to achieve a market value exceeding $500bn last week, after the firm’s net profit hit a record high in 2022 of €14.1bn for the period, up 17% compared to 2021, according to its annual results.

The company has seen continual strong growth in the last few years, with its stock price rising 43.6% in the last year alone, according to data from MarketWatch. LVMH stock price (€) Wilfrid Craigie, senior analyst at Asset Value Investors, said the luxury goods market has been "thriving" for several decades, growing an average of 6% annually since 1996. "Within this, LVMH has grown at a higher rate," Craigie noted, crediting this to "the alluring and illustrious heritage of its brands", along with its strong management. "The luxury industry has high fixed costs in terms of di...