Luxury goods giant LVMH (LVMUY, Financial) has experienced an 8.3% increase in market capitalization since the start of the year, reclaiming its position as Europe's largest company by market cap. This achievement comes after surpassing Novo Nordisk (NVO), whose market value recently declined due to underwhelming results from its new experimental weight-loss drug.
This is the first time since 2023 that LVMH has held this title. Other top European companies by market value include ASML (ASML), SAP (SAP), Hermès (HESAY), Roche (RHHBY), Accenture (ACN), Nestlé (NSRGY), AstraZeneca (AZN), and Novartis (NVS).
Under the leadership of Bernard Arnault, LVMH manages around 75 renowned brands across various sectors such as fashion, wine and spirits, perfumes and cosmetics, watches, and jewelry. Notable brands include Dior, Givenchy, Tiffany, Sephora, Stella McCartney, Hennessy, TAG Heuer, Bulgari, and Louis Vuitton.
Looking ahead, LVMH plans to strengthen its digital infrastructure and enhance customer experience, anticipating that 25% of personal luxury goods sales will occur online. The company also aims to target younger consumers and expand global partnerships, including collaborations with F1.
Analyst Eugenio Catone believes that LVMH is currently undervalued due to temporary market fluctuations. He highlights the company's strong competitive advantage and brand recognition, suggesting that the current low valuation presents a buying opportunity, with the potential for significant gains as market conditions improve and luxury demand persists.
