The rise in Louis Vuitton's m-cap is due to strong demand for luxury goods in China.
Louis Vuitton, the flagship brand of Bernard Arnault's empire, became the first European company to cross the $500 billion in market cap on Tuesday.
Here are 5 points on this major achievement:
The French conglomerate is now chasing Tesla for the ninth spot among the world's most valued companies. With a market capitalisation of $2.64 trillion, Apple tops the list.
The rise in Louis Vuitton's m-cap is due to strong demand for luxury goods in China and a strengthening euro. LV has witnessed a surge in its first-quarter sales, according to Bloomberg. While its share have risen 6.9 per cent this month, Tesla has fallen 23 per cent, cutting its capitalisation to $505 billion.
Demand has held up for LVMH products - Louis Vuitton handbags, Moet & Chandon Champagne and Christian Dior gowns among them - despite surging inflation and rising interest rates.
Like big tech firms dominate the business landscape in the United States, but in Europe, the flagbearers are companies making luxury goods. Their rally has cemented Paris's standing as Europe's biggest stock market, eclipsing London.
The company's rising value has swelled the wealth of the world's richest person, Bernard Arnault. His fortune stands at almost $212 billion, according to the Bloomberg Billionaires Index. Mr Arnault is the first person outside the US to surpass the $200 billion milestone and third person to ever reach that level of wealth after Elon Musk and Amazon founder Jeff Bezos.
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