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Luxury Giant LVMH Hits €400bn In Market Value

LVMH shares rose to a fresh record high on Tuesday, giving the luxury goods group a market capitalisation of €400 billion for the first time and cementing its lead as Europe's most valuable company.

Like other luxury companies which are heavily exposed to China, the Moët & Chandon-owner has benefited this year from the fast reopening of the world's second biggest economy.

However, some analysts said further gains in the share price could become harder to achieve.

"Let's say I'm waiting for €500 billion to mark it down as a milestone," said Angelo Meda, head of equities and portfolio manager at Banor SIM in Milan.

"They are firing their last cartridge which is the Chinese reopening, going forward things will get tougher: tough comparisons, dollar going down," he added.

Shares Increase 

The shares rose as much as 0.4% to a lifetime high of €795.70, which gave the group a market value slightly above €400 billion, according to Reuters calculations based on Refintiv data.

They had reversed course to stand 0.5% lower by 0846 GMT.

New Appointments 

Earlier this month, LVMH Chairman and CEO Bernard Arnault reshuffled top management at the group, tightening his family's grip with the appointment of his daughter Delphine to lead Christian Dior, and naming a new boss for Louis Vuitton.

Pietro Beccari, who has been the head of Dior since 2018, is moving to replace long-time Louis Vuitton CEO Michael Burke, 65.

"Both are well respected; logical promotions within the group," said Credit Suisse analyst Natasha Brilliant.

News by Reuters edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.

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