After nearly 18 months, LVMH has regained its position as Europe’s largest publicly traded company, surpassing Danish pharmaceutical giant Novo Nordisk A/S.
LVMH’s share price, which had declined by 0.8 per cent has rebounded alongside the luxury sector. Despite a challenging 2024, marked by a 13 per cent slump due to reduced spending in China, investor confidence has grown. Earnings updates from industry peers Richemont SA and Brunello Cucinelli SpA have further fueled optimism.
Since mid-November, a Goldman Sachs index tracking the luxury sector has risen over 20 per cent, boosted by China’s stimulus efforts and expectations for economic recovery. US demand may also grow under a more business-friendly administration.
The market now turns its attention to the upcoming earnings season, with particular focus on LVMH’s full-year results, set for release on January 28. Analysts will be watching for insights into demand across key regions and the impact of China’s economic measures.
