The LMVH group’s market value stood at €264.55 billion as of February 26 and trading at around €531, its shares had surged 40.64 per cent over the previous year and by 9.94 per cent over the past three months. Its new market value placed it ahead of Nestle, whose market capitalisation at the time was €242 billion, according to research published by Finaria.
LVMH, the largest luxury group globally, is therefore the highest valued company on the European stock exchange. Between April 2020 and mid-February 2021, the group’s stock rose by an impressive 65.4 per cent, according to HH Journal.The LMVH group's market value stood at €264.55 billion as of February 26 and trading at around €531, its shares had surged 40.64 per cent over the previous year and by 9.94 per cent over the past three months. Its new market value placed it ahead of Nestle, whose market capitalisation at the time was €242 billion, according to research published by Finaria.#
LVMH owns a total of 75 primary brands across five business divisions. The largest of these is fashion and leather goods, which accounted for 46 per cent of the company revenue from the first quarter pf 2020 to the third. Selective retailing accounted for a 24 per cent share, perfumes and cosmetics got a 12 per cent share, wines and spirits at 11 per cent and watches and jewelry had a 7 per cent share, Finaria said on its website.
During the first nine months of 2020, all five segments posted steep declines, selective retailing taking the lead with a 31 per cent drop. Watches and jewelry were second with a 30 per cent decline while perfumes and cosmetics came in third, falling by 25 per cent. Wines and spirits sank by 15 per cent while fashion and leather took an 1 per cent hit.
During the third quarter of 2020, however, fashion and leather posted a 12 per cent uptick, while wines and spirits only dipped by 3 per cent. Its fashion and leather goods division accounted for 86.5 per cent of its profit last year.
The group ended last year on a high note with robust performance in the three-month period which ended on December 31.
Asia contributed significantly to the 2020 fourth quarter uptick as the group’s revenue from the region (excluding Japan) increased by 21 per cent. By comparison, Europe posted a 24 per cent revenue decline during the period.
Courtesy of the pandemic though, LVMH’s overall performance took a hit as was the case with most other luxury goods retailers. The company’s full-year revenue amounted to €44.65 billion, marking a 16 per cent year-on-year (YoY) decline.
Net profit fell by 34 per cent to €4.7 billion while earnings before tax and interest declined by 28 per cent. Results were to a great extent buoyed up by Louis Vuitton and Dior, which are among its most popular brands.
Fibre2Fashion News Desk (DS)
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