L’Oreal Steals French Stock Market Crown From LVMH
L'Oreal's market value reached about €203 billion, according to LSEG data, as weaker luxury demand and sales hit LVMH.
- On Tuesday, L'Oreal became France's most valuable listed company, surpassing LVMH with a market capitalization of around €203 billion compared to LVMH's €201 billion.
- Berenberg analyst Nick Anderson attributed the shift to the "lipstick effect," where consumers forgo expensive luxury items for small treats during economic downturns. "People simply can't afford to buy these expensive luxury items and instead are indulging in small luxuries like the proverbial lipstick," Anderson said.
- Consultancy Bain reported that around 60 million consumers have turned their backs on luxury goods as persistent price hikes pushed high-end brands out of reach. The global luxury industry is contracting due to prolonged economic slump in China and Middle East tensions.
- CEO Bernard Arnault lost his title as Europe's wealthiest person to Zara founder Amancio Ortega, according to Forbes' real-time billionaire ranking. LVMH also dropped out of Europe's 10 largest companies by market capitalization on Tuesday.
- DWS equity portfolio manager Stefan Bauknecht said, "I don't see luxury trends significantly improving," suggesting L'Oreal's new position could be lasting. His outlook implies the luxury sector faces sustained structural pressure ahead.
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28 Articles
(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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L-Oréal becomes the first capitalization of CAC 40, in a cautious session before the Fed's decision. ...
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