Shares of luxury goods giant LVMH soared to a new record high of £703.35 (€795.7bn) this morning, bringing the company’s market capitalisation to £350bn.
LVMH (Moët Hennessy Louis Vuitton) continues to thrive after China’s reopening at the start of the year proving to be a major boost for the company, which relies heavily on luxury consumers in the country.
However, analyst Angelo Meda, head of equities and portfolio manager at Banor SIM in Milan, cautioned that future share price gains may present more difficulties.
“Let’s say I’m waiting for €500bn to mark it down as a milestone, they are firing their last cartridge which is the Chinese reopening, going forward things will get tougher: tough comparisons, dollar going down”, Reuters reported.
China relaxing its zero-Covid policy in December also gave a boost to luxury shares worldwide, with shares of LVMH, the world’s largest luxury group, up 2.7 per cent and Cartier-owner Richemont rising almost four per cent.
China accounts for 21 per cent of the world’s £290bn luxury goods market, behind North America and Europe.
Last week, LVMH Chairman and CEO Bernard Arnault reshuffled the company’s top management, naming his daughter Delphine as the new boss of Dior in a move that solidified his family’s grip on the company.